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Here are the facts of tyranny in America, 
a tyranny worse than that which drove 
George Washington, Jefferson, Tom Paine, 
John Adams and the other Founding Fa- 
thers to revolution. The Labor Spy Racket 
records the testimony produced at the La- 
Follette investigation, revelations of indus- 
trial espionage, company police brutality, 
unlawful arrests, murders, secret supplies of 
ammunition and gases to be used against 
civilians, and other outrages that shocked 
the country revelations which made 
headline news for weeks. 

Mr. Huberman, well-known writer on 
labor subjects, was in Washington during 
the hearings of the LaFollette Civil Liber- 
ties Committee, and he has made a notable 
condensation of the first eight bulky official 
volumes of testimony and evidence. Here 
it is. You'll find it dramatic reading. 

155 East 44th Street, New York 

From the collection of the 

OP Z T m 
1 rrelinger 

i a 

t P 

San Francisco, California 


The Labor Spy Racket 

by the same author 



Labor Spy Racket 




All rights in this book are reserved, and it may 
not be reproduced in whole or in part without 
written permission from the holder of these rights. 
For information address the publishers. 

Composed and printed in the United States of America by Union Labor 


Typography by Robert Josephy 

First printing September 1937 
Second printing September 1937 

To Sybil, Aileen, and Roger, 
staunch trade unionists 


i. $80,000,000 a Year for Spies 3 

ii. Smash the Union ! 9 

in. Spies at Work 34 

iv. The Gentle Art of Hooking 50 

v. The Rats' Code 71 

vi. Employers Organize 105 

vn. "The American Way" 139 

vin. What is to be done? 157 


Following page 

Senate Probers Examine " Persuader " 74 

"Six Little Pinks Sitting in a Row" 74 

Raymond J. Burns and W. Sherman Burns 74 

John L. Lewis at the Hearings 74 

The Frankensteen Battle (i) 106 

The Frankensteen Battle (2) 106 

The Frankensteen Battle (3) 106 

"Memorial Day Massacre " at Republic Steel 106 


MOST of the material in this book is based on the evidence intro- 
duced in the hearings before the Subcommittee of the Committee on 
Education and Labor of the United States Senate, popularly 
known as the La Follette Civil Liberties Committee. The hearings 
were reported in the press, but for obvious reasons the press ac- 
counts could not be full enough. The complete text has been printed 
by the Government Printing Office 2,500,000 words of steno- 
graphic records to date, published in eight volumes with perhaps 
twice that number still to come. An obvious need, lest this vitally 
important material be buried on committee shelves, was a short 
book that would fall between the too-short newspaper account and 
the too-long stenographic record. 

I have tried to write such a book. My task, as I saw it, was to 
become thoroughly familiar with the complete text and select 
therefrom, and then organize, those highlights that tell the story. 
It is a shocking story. It is a story which should shame our indus- 
trialists and arouse our workers. It is a story which should cause all 
fair-minded Americans to rise up in their wrath and demand that 
immediate steps be taken to prevent what has happened here from 
ever happening again. 

Only that part of the committee's work which pertains to Labor 
Spies is dealt with in these pages. The related topics of strike- 
breaking and industry's traffic in tear gas and munitions receive 
little attention, primarily because they have been so fully treated in 
/ Break Strikes by Edward Levinson, and because it was important 
to keep the book as short and simple as possible. 

I am deeply indebted to the following for their advice and help: 
Max Lerner, David J. Saposs, Edwin S. Smith, and my wife. 


New York, June 1937 

I. $80,000,000 a Year for Spies 

FOR TEN YEARS Richard Frankensteen had been a trimmer in 
the Dodge plant of the Chrysler Corporation in Detroit. He had 
followed in the footsteps of his father who had worked for the 
Dodge Corporation for many years before and had been a leader in 
the plant band. Frankensteen was popular with the other employees 
in the trim division and in 1934 they elected him as their repre- 
sentative in the Chrysler Corporation Representation Plan. At a 
meeting of the representatives of the other divisions, Frankensteen 
was elected as chairman of the whole section. It was not long before 
he and the other representatives learned that their Works Council 
had definite limitations: collective bargaining under this company 
union plan meant that the men could ask for and get better lighting, 
a larger milk bottle, improved ventilation, and similar concessions. 
But beyond these they could not go. When it came to collective 
bargaining for higher wages, shorter hours, seniority rights, etc., 
the employee representation plan failed them. 

The representatives decided to get together and call meetings of 
their constituents to see what could be done. The outcome of these 
meetings of the Chrysler workers was the formation of a union of 
their own, the Automotive Industrial Workers Association. Four- 
teen locals of the A.I.W.A. were organized in the Dodge plant and 
Richard Frankensteen was elected president. At the same time, 
Frankensteen, along with the other representatives, continued his 
services in the Chrysler employee representation plan. The workers 
had both a company union and their own union. 

Frankensteen was a hardworking president. He attended the 
meetings of the fourteen locals and made speeches to the members. 
One night in 1934, after a speech to the members of the paint local, 



Frankensteen was driven home in the car of the vice president of the 
local, John Andrews. This was the beginning of a warm friendship. 
Andrews became Frankensteen's most trusted companion. Richard 
wanted more than anything else to create a strong union composed 
of militant wideawake members, and he naturally took to John who 
was fearless, uncompromising, and able. John was a strong union 
man; he harangued the men for hours and gave them courage to go 
out on strike when conditions grew too bad; he was the leader on 
the picket line; he drove Richard around in his car to union meet- 
ings at any and all hours. Richard felt that he could depend on 
John to devote every moment of his spare time to the formation of 
that powerful body of militant unionized workers which was 
Richard's sole ambition. 

Both men were married and had two children. The families, 
living less than ten blocks apart, became very friendly. John's 
wife, Dee, and her two children, were frequent visitors at tKe 
Frankensteen home. While Carol-Lee and Marilyn Frankensteen 
played with Ronnie and Dale Andrews, Richard's wife, Mickey, and 
Dee Andrews would go on shopping trips together. When Dee was 
sick Mickey brought over some custard she had made and took care 
of Ronnie and Dale. On another occasion John and Dee drove 
Mickey and the babies to and from her parents' home in Dayton, 
where all of them stayed together in the old folks' house and had a 
grand two day visit. Five nights a week and all day Sunday the 
two men rode around together busy with their union work, but 
every Saturday night was set aside regularly for Fun a joint good 
time when the two wives with their husbands met for dinner and the 
movies. In the summer of 1935 when the plant was shut down for a 
few weeks, the two families went to Lake Orion for a vacation. 
They took a house together and shared expenses. The Andrews 
and the Frankensteens were firm fast friends for the two years 
following that night in 1934 when John Andrews first shook hands 
with Richard Frankensteen after his speech at the meeting of the 
paint local. 

Tet every day for the whole period of tbeir friendship, John Andrews 

$80,000,000 A YEAR FOR SPIES 5 

wrote a detailed report of the activities of bis pal^ Dick Frankensteen. 
John Andrews was a spy. He sent his reports to the office of the 
Corporations Auxiliary Co., a private detective agency hired by the 
Chrysler Corporation. For spying on his friend Frankensteen and 
his other fellow workers, John Andrews was paid $40 a month by 
the Corporations Auxiliary. For the services of its spy, L-392 (the 
code number of John Andrews), Corporations Auxiliary billed the 
Chrysler Corporation at the rate of $9.00 per day. And for the 
services of all its undercover operatives in 1935, Corporations Auxil- 
iary was paid by the Chrysler Corporation the sum of $72,611.89. 
From that last figure the payment to one detective agency by 
one corporation in one year it becomes obvious that the story of 
John Andrews and Richard Frankensteen is more than the story of a 
friend betrayed. It is the story of a big business. John Andrews was 
one operative of one agency. There are hundreds of agencies employ- 
ing thousands of operatives in the United States. There are agency 
chains with branch offices in many large industrial centers. Their 
undercover operatives are at work in every part of the country in 
every industry. It is impossible to obtain exact figures for either 
the number of agencies or their operatives. They operate in secret 
and never divulge more information than they have to about their 
business. In the hearings before the Subcommittee of the Committee 
on Education and Labor of the United States Senate the La 
Follette Civil Liberties Committee they were very unwilling wit- 
nesses. They lied frequently and suffered from partial and complete 
loss of memory throughout. However, Mr. Heber Blankenhorn, 
industrial economist on the National Labor Relations Board, was 
able to furnish the committee with a list he had compiled after 
twenty years of study of industrial espionage. Mr. Blankenhorn is 
the foremost authority on the subject in the United States. Here is 
his list from the record: 

As of April 1936 

Total agencies 230 [Turn to Appendix 

A for complete list] 



William J. Burns, International Detective Agency, Inc. 43 

Pinkerton's National Detective Agency 35 

Railway Audit and Inspection Co., with affiliates 

(known to be incomplete) 18 

Corporations Auxiliary Co. (known to be incomplete) 8 
Sherman Service, Inc 9 

How many operatives these 230 agencies employ is still a mys- 
tery. Estimates vary from 40,000 for all of them to 135,000 for just 
the Burns, Pinkerton, and Thiel agencies alone. The minimum 
figure is based on the fact that there are some 41,000 union locals 
in the United States and it is estimated that there is a spy in every 
local. One labor leader with many years of experience states that he 
never "knew of a gathering large enough to be called a meeting 
and small enough to exclude the spy." 

What is the cost to industry of this countrywide spy service? 
How much of the money that you pay for the milk you drink, the 
car you drive, the clothing you wear, the furniture you use, the food 
you eat, went to paying the miserable wages of the stool-pigeons 
and the fabulous salaries of the agency heads? We don't know 
exactly, but even the lowest estimate will astound you. Mr. Blank- 
enhorn, figuring an average of $175 a month paid to the agency per 
spy, and 40,000 spies, computes the minimum cost at over $80,- 
000,000 per year! That this is probably too low an estimate was 
indicated in the hearings before the committee when General 
Motors officials testified that their plants had paid to Pinkertons 
alone, $419,850.10, for the period from January 1934 through July 
1936; and that they paid to all the agencies they hired in that 
period a total of $994,855.68 ! Small wonder that so many detective 
agencies have given up shadowing criminals and have turned their 
attention to selling what they euphemistically call their " industrial 
service." They have found that there is more money in industry 
than in crime. 

$80,000,000 A YEAR FOR SPIES 7 

Who are the clients of these detective agencies? Here is a partial 
list of the customers: 

Employers' associations 36 

Corporations of nationwide scope 14 

Railroads 27 

Tractions, utilities, bus companies 29 

Metallurgy and machinery 52 

Mining 32 

Auto industry 28 

Clothing, silk, and textile mills 29 

Steamship lines 20 

Radio and refrigerators 9 

Food 28 

Shoe and leather 1 1 

Building, supplies, etc 7 

Milling 8 

Department and clothing stores 7 

Publishers and printing 5 

Real estate 6 

Trucking, delivery, warehousing 17 

Lumber, woodworking 3 

Hotels and theaters 9 

Banking, trust and security 5 

Miscellaneous 47 

Total 429 

A breakdown of that list will reveal some names of companies 
which are well known to you. For example, among the 499 clients in 
19 states of the Corporations Auxiliary Co. in the period 1934-1936 
were the following: 

Aluminum Co. of America Crane Co. 

American Book Co. Diamond Match Co. 

Chrysler Corp. (23 plants) Dixie Greyhound Lines 


Firestone Tire and Rubber Co. Midland Steel Products Co. 

General Motors Corporation New York Edison Co. 

and subsidiaries (13 plants) Postum Co. 

International Shoe Co. Quaker Oats Co. 

Kellogg Co. Radio Corp. of America 

Kelvinator Corp. Standard Oil Co. 
Statler Hotels, Inc. 

The Pinkerton Agency, in the years 1933-1936, "serviced" these 
familiar firms, among many others: 

Abbott's Dairies Montgomery Ward & Co. 

Bethlehem Steel Co. National Cash Register Co. 

Campbell Soup Co. Ohrbach's Affiliated Stores 

Continental Can Co. Pennsylvania R. R. Co. 

Curtis Publishing Co. Shell Petroleum Corp. 

Endicott- Johnson Corp. Sinclair Refining Co. 
Libbey-Owens Ford Glass Co. United Shoe Machinery Corp. 

And among the mutilated records of the Railway Audit and In- 
spection Co., the following names appeared: 

Borden Milk Co. 

Carnegie-Illinois Steel Corporation f subsidiaries of 

H. C. Frick Coal and Coke Co. \ United States Steel 

Consolidated Gas Co. of New York 

Frigidaire Corp. 

Jewish Hospital, Brooklyn, N. Y. 

Pennsylvania Greyhound Bus Co. 

Western Union 

Westinghouse Electric & Manufacturing Co. 

These are only a few of the clients of three of the agencies. A 
complete list covering all the agencies would contain hundreds of 
other names. Big firms and small firms, old firms and new firms, 
famous firms headed by famous people and unknown firms headed 
by unknown people all are subscribers to the "industrial service" 
of these private detective agencies. 

II. Smash the Union! 

NOW $80,000,000 a year is a lot of money. 

When the detective agencies sell their industrial service, what are 
they selling ? What do their customers get in return for the $80,000,- 
ooo a year? 

You would think that the quickest and easiest way of having that 
question answered would be to ask the people who buy the service 
and the people who sell it. Senator La Follette and Senator Thomas 
tried that. But they found that this was a peculiar business. The 
people who knew most about it wouldn't talk. They were very secre- 
tive. They destroyed many of their records. Often they didn't hear 
the question or when they did hear it, they didn't understand it. 
They beat around the bush. They were shifty unwilling witnesses. 
They lied frequently. Nevertheless, there were times when the 
evidence was so overwhelming, that they had to come clean. Backed 
into a corner from which there was no escape they had to confess to 
the truth. And bit by bit, the story did come out. Salvaged records, 
indiscreet letters, confessions by spies, confessions by operatives, 
admissions by plant managers all were piled up until the broad 
outlines of the business and many of the details, were clear. We 
know now what the private detective agencies sold. 

They sold a unique service Union-Prevention and Union- 
Smashing. Industrialists who bought the service wanted to know 
about their workers' attempts to organize. They paid $80,000,000 
a year to keep their plants from becoming unionized, or if they were 
unionized, to break up the union. There is no longer any doubt 
about it. The record is clear. 

Here, for example, is part of a letter from the Foster Service to a 
prospective client: 



Your letter of July 28 is received. With reference to your in- 
quiry about my experience and what I am prepared to do in 
case of disturbance, etc. 

First, I will say that if we are employed before any union or 
organization is formed by the employees, there will be no strike 
and no disturbance. This does not say there will be no unions 
formed, but it does say that we will control the activities of the 
union and direct its policies, provided we are allowed a free 
hand by our clients. 

Second. If a union is already formed and no strike is on or 
expected to be declared within 30 or 60 days, although we are 
not in the same position as we would be in the above case, we 
could and I believe with success carry on an intrigue 
which would result in factions, disagreements, resignations of 
officers, and general decrease in the membership. 

That's plain and to the point. Another letter, from the Marshall 
Detective Service Company to the Red Star Milling Company of 
Wichita, Kansas, was equally precise. It is especially interesting 
because in it the agency found it necessary to explain something 
that might have puzzled the client: the Red Star Company was pay- 
ing for Union-Smashing, yet the reports it received from the agency 
showed that the operative was about to become an officer in the 
union! It looked like the doublecross, but the agency assures the 
client that everything is O.K.: 

You have doubtless learned from the reports that our No. 20 
is likely to be elected Recording Secretary of the Local in 
Wichita, and for fear that you may not understand this in the 
right light, we wish to advise you that all of our Operatives are 
instructed to accept the office of Recording Secretary if possi- 
ble; as the Recording Secretary has nothing to do with agita- 
tion, simply keeping the records which are valuable to us, and 
from which we obtain all our information. You will understand 
that if No. 20 is elected to this office he will be in a position to 
give the name and record of every man who belongs to the 


union, and as to whether or not he pays his dues, and attends 
the meetings regular, and all the inside information that we 

The only office in the Union that we bar our men from ac- 
cepting is that of Business Agent. The Office of Business Agent 
is the only office in the union, which can harm the mills, as it is 
the duty of the Business Agent to induce the men to join the 
Union, and as it is not our policy to induce men to join the 
Union, but to endeavor to keep them from joining, our Opera- 
tives are naturally barred from accepting the office of Business 
Agent . . . 

We trust that you will fully understand this matter and if 
No. 20 is elected, he will be instructed to take any orders from 
you which you may think will benefit the mill and endeavor to 
carry them out in the Union, and as an Officer in the Local his 
views will carry more weight with your men than they would 

That was written in 1919. The Foster Service letter was written 
in 1920. Has the service changed much since then? Not very much 
according to Mr. James H. Smith, president of the Corporations 
Auxiliary Co. He ought to know because he has been in the business 
about 40 years. Senator La Follette asked Mr. Smith, when he was 
on the witness stand, whether there had been many changes since 
he originally came into the business. Here is his answer, "Well, 
I think it has changed slightly, but not very much. We have gone 
into the efficiency end of it more definitely and particularly as the 
years have gone by." 

But though the business hasn't changed much the method of 
describing it has. The agency heads no longer commit themselves as 
openly as they once did. They rarely make the mistake of allowing 
themselves such complete frankness as in the past. In 1910 the 
Corporations Auxiliary Co. could inform a client that "wherever 
our system has been in operation for a reasonable length of time, 
considering the purpose to be accomplished, the result has been 


that union membership has not increased, if our clients wished 
otherwise. In many cases local union charters have been returned 
without publicity and a number of local unions have been dis- 
banded. We help eliminate the agitator and organizer quietly and 
with little or no friction." 

But in 1937 Mr. Smith wasn't writing or talking so plainly. He 
was much more guarded. When he was asked to describe his agen- 
cy's work at the La Follette hearings, he talked glibly about selling 
the services of his "industrial engineers" but he had to admit 
that not one of his men was an engineer. Here is Mr. Smith on the 
witness stand: 

SENATOR LA FOLLETTE. What type of business are these com- 
panies engaged in, Mr. Smith? 

MR. SMITH. They are engaged in the business of assisting 
manufacturers in increasing and improving their products both 
in quantity and quality and reducing their operating costs. 
That is their primary business. 

SENATOR LA FOLLETTE. And how is that accomplished? 

MR. SMITH. Well, it is accomplished on a very simple process. 
We feel that in order to get efficiency and to get a good product 
the first thing you have to have is harmony, if you can possibly 
get it, because without harmony you get no efficiency or any- 
thing else, and therefore we sometimes say we assist in harmon- 
izing conditions in a plant. 

The change from 1910 is apparent. Then you knew without any 
question what service Corporations Auxiliary performed. In 1937, 
Mr. Smith uses honeyed words, "we assist in harmonizing condi- 
tions in a plant." That sounds nice but what does it mean? The 
testimony of Mr. Herman Weckler, vice president and general 
manager of the De Soto Motor Corporation, a Chrysler subsidiary, 
gives us a clue. Remember that the Chrysler Corporation was Cor- 
poration Auxiliary's biggest customer: 

SENATOR LA FOLLETTE. Did you receive reports and did 
these reports, while you were receiving them, give information 


on meetings of union locals in which employees of the Chrysler 
plants were members ? 
MR. WECKLER. Yes, sir. 

SENATOR LA FOLLETTE. Did you receive reports on meetings 
of the district council of the United Automobile Workers? 

MR. WECKLER. I think I have seen one or two of those, yes. 

SENATOR LA FOLLETTE. And did they report on the meetings 
of the Society of Designing Engineers? 

MR. WECKLER. I saw reports from the Society. 

SENATOR LA FOLLETTE. Through these reports, then, it is a 
fair statement to say that you are kept fully informed as to 
the strategy and plans of these locals and this district organi- 
zation, is it not? 

MR. WECKLER. Yes, sir. 

If you want convincing proof of how very well informed Mr. 
Weckler was of the union activities of the auto workers, just turn to 
Appendix B, and read the kind of detailed spy report he was re- 
ceiving from Corporations Auxiliary. From Mr. Weckler's testi- 
mony and from this sample spy report, we gather that Corporations 
Auxiliary's 1937 model of "harmonizing conditions," was in no 
sense different from its 1910 model of union-smashing. 

Mr. Smith, president of Corporations Auxiliary, was an unwilling, 
evasive witness. His general manager, Mr. Dan Ross, was more 
willing but equally slippery. Mr. Ross picked up Smith's "harmon- 
izing conditions," and added to it "promoting efficiency" as his 
descriptive term for the spying activities of his stool-pigeons. Like 
Smith, Ross was careful to talk all around the subject but very little 
directly on it. But both Smith and Ross were long-winded as com- 
pared to the tight-lipped Pinkertons. The heads of this agency 
doing a million dollar a year business could remember almost noth- 
ing at all, and what they did remember always had precious little 
to do with reporting on the union activities of their clients' workers. 


One afternoon when six of the agency heads were sitting on the 
stand tossing the questions around to one another in their usual 
fashion, a newspaper man sent up a note to Mr. Robert Wohlforth, 
the able secretary of the committee: The note read, 
Six little Pinks sitting in a row. 
Six little Pinks and none of them know. 
That's bad poetry but it's good reporting. Judge for yourself: 

SENATOR LA FOLLETTE. Mr. Pinkerton, will you take a look 
at that exhibit, please [Pinkerton journal sheet], and tell me 
what kind of information you would say the agency would try 
to get for the United States Rubber Reclaiming Company? 

MR. PINKERTON. Information dealing with sabotage, theft of 
material, and other irregularities. 

SENATOR LA FOLLETTE. What would you include under 

MR. PINKERTON. Damage to company property. 

SENATOR LA FOLLETTE. Anything else ? 

MR. PINKERTON. No, not if you take that in a general term. 

SENATOR LA FOLLETTE. It goes on to say " also thefts of ma- 
terial." That is pretty obvious. But what about "and other 
irregularities"? What would you say that includes? 

MR. PINKERTON. That could include a great many things. 

SENATOR LA FOLLETTE. What would it usually include? 

MR. PINKERTON. Probably discrimination, favoritism by the 
minor officials in the plant, and violation of rules and regula- 

[Senator La Follette then reads a report of a Pinkerton spy, 
dated May 16, 1936, describing a union meeting* attended by 
some workers of the United States Rubber Reclaiming 
Company, Buffalo, N. Y.] 

SENATOR LA FOLLETTE. Would you say that this report had 
to do with investigation of sabotage of the company's property, 
theft or other irregularities? 

* Italics here and throughout the book are the author's. 



SENATOR LA FOLLETTE. What would you say, Mr. Rossetter, 
about that? 

MR. ROSSETTER [vice president and general manager]. I 
would say that it did not touch those points, but my impression 
is that that was a "Red" organization. I am not familiar with 
the names of the different units comprising the Communist 
Party or its supporters, but that report would cover 

SENATOR LA FOLLETTE (interrupting). Would you say it had 
anything to do with the investigation of sabotage of the com- 
pany's property, theft of materials, or other irregularities? 

MR. ROSSETTER. It might lead to sabotage if those people 
were the kind that I think they may be Communists. 

SENATOR LA FOLLETTE. Now, Mr. Rossetter, isn't it true that 
the description, in the Pinkerton journal, of sabotage, theft and 
irregularity, often actually covers up investigations to be 
made of union activities? 

MR. ROSSETTER. Well, if you can take that as a sample, I 
will have to say "yes" to it ... 

SENATOR LA FOLLETTE. As a matter of fact, did not the 
agency undertake to report on the activities of unions within 
this plant and organizational efforts of the client's employees? 

MR. ROSSETTER. I have no personal knowledge of that, Sena- 
tor. I could not say one way or the other. 

SENATOR LA FOLLETTE. Do you know about it, Mr. Dudley? 

MR. DUDLEY [assistant general manager]. The only ones who 
would know about that, I presume, would be the division 
manager and the superintendent. 

SENATOR LA FOLLETTE. Do you think the client would know 
what he hired you for, Mr. Pinkerton? 

MR. PINKERTON. I should think he would; yes, sir. 

SENATOR LA FOLLETTE. I now offer an exhibit. It is a letter 
from L. J. Plumb, of the United States Rubber Reclaiming Co, 
to Charles F. Smith, dated August 5, 1935, re Pinkerton 


Agency. It is on the stationery of an interoffice memorandum 
and is as follows: 

"I have yours of the 2nd in reference to this subject. You do 
not, however, tell me whether they have given you any in- 
formation of value or importance. 

"What have their reports amounted to? 

Very truly yours, 

L. J. Plumb, President: 9 

On the back of this exhibit ... is the reply: 


"Dear Mr. Plumb: The information contained in the Pinker- 
ton reports has not resulted in any direct saving or profit. 
They cover the activities of both unions and report any meet- 
ings or other activities involving our employees or the rubber 
workers in this district. As stated in my letter of August 2nd I 
consider this about the best arrangement that we could make 
for being informed of such activities. 


SENATOR LA FOLLETTE. It would indicate that your client, 
Mr. Pinkerton, was actually interested in organizational 
activities, would it not? 

MR. PINKERTON. Yes, sir; it would. 

SENATOR LA FOLLETTE. And it is obvious that your Buffalo 
office agreed to furnish the names of the employees of the client 
who were active in union activities, is it not? 

MR. PINKERTON. This does not say that any names of em- 
ployees are being furnished. 

SENATOR LA FOLLETTE. Well, did they furnish that informa- 

MR. PINKERTON. I do not know. 

SENATOR LA FOLLETTE. Well, let us read this next exhibit: 


"Informant reports: 

Tuesday, March 19, 1935. 

"At headquarters of the Rubber Workers' Industrial Union 
and the Trades Union Unity League, Charles Doyle, J. J. 
Kissell, Angello Bustini, and several other members were heard 
to say a meeting of the employees of the U. S. Rubber Reclaim- 
ing Co. was held secretly at Liberty Hall, Jefferson and Bristol 
Sts., last evening, which was well attended and three members 

"It was learned that B. Brewer, Earl Ericks, John Jackson, 
Willard Dunsmore and Herbert Zmanski, all employees of the 
U. S. Rubber Reclaiming Co., have agreed to serve on the 
organization committee." 

Now the fact that the Pinkertons thus tried in every way to con- 
ceal the true character of their "industrial service" is not impor- 
tant. What is important is for us to understand what the nature of 
that work was. There is no doubt that some of the operatives were 
indeed reporting on "sabotage, theft, and other irregularities." 
There is also no doubt that many of the operatives were reporting 
on the union activities of the workers. The record shouts the story 
spy agencies are hired primarily for the purpose of keeping the 
employer informed of any and all attempts on the part of the work- 
ers in a plant to better their conditions through organization; and 
to use any means, fair or foul, to destroy that organization. 

For further proof let us turn to the testimony of the men who did 
the job, the spies themselves. Mr. William H. Martin was a Pinker- 
ton operative for seven years, from 1928 to 1935. Here is part of his 
sworn testimony: 

SENATOR THOMAS. What was your next industrial job, Mr. 

MR. MARTIN. That was with the Harmony Bus Line, Pitts- 
burgh, Pa. 

SENATOR THOMAS. Detailed for what purpose? 

MR. MARTIN. Detailed by Mr. Reed, superintendent at 


Pittsburgh, to ride a certain man named McDonald, who was 
a bus driver for this company, ride him out of town for about a 
40 minute ride to Allison Park. I was to get acquainted with 
him, start talking to him, get some information as to what they 
were doing, whether they were organizing, who the men were 
that were going to join the union, anything I could get pertain- 
ing to their unionization. 

SENATOR THOMAS. Did you know who Mr. McDonald was? 

MR. MARTIN. I had heard he was the chairman of the organiz- 
ing committee for this company. 

SENATOR THOMAS. You definitely realized you were on a 
labor spying job ? 

MR. MARTIN. YeS, Sir. 

SENATOR THOMAS. Did Reed tell you why he wanted the 
information ? 

MR. MARTIN. Mr. Reed said they were having some trouble 
over there, the men were going to organize and the company 
was not in a position to pay union drivers. 

SENATOR THOMAS. The trouble was that the men were going 
to organize? 

MR. MARTIN. YeS, Sir. 

SENATOR THOMAS. That was conceded as a trouble? 

MR. MARTIN. Yes, sir; and they wanted some information to 
do away with that. 

SENATOR THOMAS. What kind of information were you in- 
structed to obtain, definitely? 

MR. MARTIN. To obtain information as to who the men were 
that were going to join the union . . . 

The General Motors Corporation and its subsidiaries were clients 
of the Pinkerton Agency. One of the workers in the Chevrolet plant 
in Atlanta, Georgia, was Mr. Lyle Letteer, the son of the assistant 
superintendent of the Atlanta office of the Pinkerton agency. In 
April 1934 he was employed as a Pinkerton spy while continuing 


his work in the plant. Mr. Letteer was instructed to join the union 
and report on its financial condition, its paid-up members, and the 
names of the Chevrolet employees who were union members. He 
was told to get himself elected as an officer in the union and make a 
detailed report on its secret meetings. In the summer of 1935 he was 
able to perform a major stroke as a spy. The other officers of the 
union were attending a convention in Detroit and Mr. Letteer 
was left in charge of the office. What a break! That he made the 
most of his opportunity is plain from his sworn testimony: 

SENATOR LA FOLLETTE. Did you take advantage of that 
situation of being left as the sole person in charge and responsi- 
ble for these records, to make use of them for Pinkerton? 

MR. LETTEER. I took advantage to this extent, that after ask- 
ing Littlejohn [Pinkerton superintendent] what he wanted to 
know and receiving his answer, I went to the labor office and as 
I was going to close up for the night I would take all the rec- 
ords, including the ledger and everything, whatever he called for 
for that day, take it to the office, and we would make copies 
that night. 

SENATOR LA FOLLETTE. You mean to the Pinkerton office? 

MR. LETTEER. Yes, Sir. 

SENATOR LA FOLLETTE. Then you returned the records to the 
office the next morning? 

MR. LETTEER. Returned the records to the office next morning. 

SENATOR LA FOLLETTE. State, if you know, what use the 
Pinkerton Agency made of all this information that you were 
able to get as a result of your position of trust in this union? 

MR. LETTEER. The exact use of it I could not say but it 
seemed to be pretty hot as far as Littlejohn would say. 

The scene now shifts to Michigan. Pinkerton still on the job for 
General Motors. Mr. Lawrence Barker of Detroit is taken on as a 
Pinkerton spy (after a few months, he confessed to the union 
officials and two letters are in the record attesting their faith in 
him) and is planted in the Fisher Body factory in Lansing. His 


superior officer is Mr. R. S. Mason, assistant superintendent of the 
Detroit office of the Pinkerton Agency. We learn from Mr. Mason's 
talks with Mr. Barker that pinching the records from a union office 
is only one way of keeping tab on union activities there are other 
Pinkerton methods, equally efficient. Here is Mr. Barker on the 
witness stand: 

SENATOR LA FOLLETTE. In these discussions that you had 
with Mr. Mason, did you get the impression or did you know 
that he knew a good deal about the activities of the interna- 
tional union, as well as the various locals? 

MR. BARKER. He did seem to know quite a bit about the 
activities of the international. 

SENATOR LA FOLLETTE. Did he ever tell you how he happened 
to know so much about the union and its activities? 

MR. BARKER. Yes, sir, he said that they had a dummy office 
in the Hoffman Building [United Automobile Workers Asso- 
ciation headquarters in Detroit], that the telephone there was 
tapped, and also President Martin's telephone was tapped at 
his home. That they knew everything about him and every 
move they would make. 

SENATOR LA FOLLETTE. Mr. Barker, as the result of your ex- 
perience as an undercover operator, informant and spy, what is 
your impression about the effectiveness or lack of effectiveness 
of this labor espionage work in breaking up or preventing 
unions, genuine labor unions, from organizing? 

MR. BARKER. It is very effective, especially in the local to 
which I belonged . . . One time at Lansing-Fisher they were 
almost i oo per cent organized. And finally it went down to 
where, as I said, there were only five officers left. 

SENATOR LA FOLLETTE. You attribute that to undercover 
operatives ? 

MR. BARKER. Yes; I do. 


Mr. Barker testifies, from experience, that labor espionage has 
been very effective in breaking up unions. He gives, as an example, 
the smashing of the Lansing-Fisher local. Affidavits of similar hap- 
penings in other unions are strewn throughout the pages of the 
record. From the testimony of Robert Travis, organizer for the 
United Automobile Workers, the committee learned of a Federal 
Labor Union in Flint, which had shrunk from a membership 0/26,000 
in /PJ5, to 122 in 1036 wrecked by union officials who were spies. 

The spy who has become an official in the union is, of course, in a 
key position to wreak havoc with the organization. The more 
capable he is, the more dangerous he is. Some spies have been able 
to reach the top and all the way up they have been doing their 
deadly work. William Green, president of the A. F. of L., testified 
that a spy named L. E. Woodward had become president of the 
Savannah Trades and Labor Council, vice president of the Georgia 
Federation of Labor for 4 years, and had even been nominated for 
president at the state convention of the A. F. of L. ! His reports, 
meanwhile, went regularly through the Pinkerton Agency to the 
Savannah Electric and Power Company, and probably, to every 
other company in Georgia that subscribed to the Pinkerton 

The extent to which labor unions are infected with the plague of 
spies is so widespread as almost to exceed belief. If some of the 
authentic tales had been invented they could not have sounded 
more fantastic. The following story, however, has been proven true: 
in November 1935, the American Federation of Labor, in an effort 
to collect all the information it could about spies, sent a question- 
naire to its locals throughout the country. Here are the questions 
asked and the answers received from Local 18920, in Hartford, 

American Federation of Labor Questionnaire November 30, 

i . What spy and strikebreaking agencies operate in your ter- 
ritory or industry? A. Pinkerton's National Detective 


Agency, R. W. Bridgman Detective Bureau, Hartford Private 
Detective Bureau (listed from phone directory). 

2. Which are most active since the passage of the Wagner 
Act ? A. No knowledge. 

3. Give names of agencies, addresses and, if possible, names 
of chief officers. A. See no. I. 

4. How many operatives or spies do agencies have ? A. 
No knowledge. 

5. What exposures of spies among your membership have 
been made by your union? Or in the courts? A. None in our 
local. One employee of Fuller Brush Company exposed as spy. 

6. If possible, give full account of facts. A. All facts in 
possession of President W. Kuehnel, Hartford Central Labor 

7. What activities are spy agencies carrying on? A. No 

8. Have they organized 'citizens* committees'? A. Not 
to my knowledge. 

9. What industrial concerns are known to have employed 
spy agencies ? A. Fuller Brush Company. 

10. What precise information have you as to large industrial 
concerns' own spy system ? A. None. 

11. Which agencies at present supply strikebreakers? How 
many have they recruited (give instances) ? A. None, to 
best of my knowledge. 

Re resolution no. 168. 

Name of union: Typewriter Workers Local No. 18920. 

Secretary: F. A. Roszel. 

Address: 2 Wolcott Avenue, Wilson, Conn. 

Notice that the secretary of this Hartford local is not very helpful 
more than half the questions are answered "no knowledge." 
This reply was received at A. F. of L. headquarters on December 
n, 1935. One week later the picture of Mr. F. A. Roszel, the secre- 
tary of the local, was published. He was a spy. When he came to 


Hartford in 1934, the paid membership of the local of which he later 
became secretary was 2500. In less than one year, the paid member- 
ship had dropped to 75, with a regular attendance of not more than 
8 or 10 members! Mr. Roszel had done a swell job for the Interna- 
tional Auxiliary (a subsidiary of Corporations Auxiliary). 

There is bitter irony in this story of an A. F. of L. questionnaire 
on spies being answered by a union secretary who was himself a 
spy. Equally ironical and significant was the evidence given 
by Mr. Matthew Smith, general secretary of the Mechanics Educa- 
tional Society of America, a union of tool and die makers, to Presi- 
dent Roosevelt's joint N.R.A. and Labor Department inquiry into 
employment stabilization. The New Tork Times of December 17, 

1934, reported Mr. Smith as testifying that "several weeks ago he 
had inadvertently lost a copy of the minutes of his union meeting 
and he had received an even more detailed statement of what had 
transpired at the meeting from a detective agency which had * cov- 
ered' the meeting through its own operative"! 

Was it merely a coincidence that of the 30 operatives employed 
out of the Cleveland office of Corporations Auxiliary in November 

1935, "23 were members of unions, 2 were not members of unions 
at the plant, and the remaining 5 were non-union men employed at 
plants where no union had been organized"? 

The Pinkertons, according to a schedule they themselves sub- 
mitted to the committee, did not have as high a percentage of their 
operatives in unions, but what their operatives lacked in union 
affiliations, they made up in influence as high ranking union officials. 

The summary of this schedule, prepared by Pinkerton's Na- 
tional Detective Agency, Inc. [March 16, 1937] is as follows: 
Total number of secret sources carried under arbitrary or 
secret designations 303. 
Of this number, 

132 are members of trade unions, 

43 are members of company unions or employee repre- 
sentation plans. 


Of those who are members of trade unions 
6 hold office as president 

5 " " " vice president 
i holds " " treasurer 

3 hold " " secretary 

9 " recording secretary 

6 " " "trustee 

i holds " business agent 

3 hold " organizer 

3 " delegates to the central labor union 
i holds " chairman shop committee 

4 hold " commit teemen 

i holds " financial secretary 

3 hold " members of executive board 

i holds " division chairman 

Of those who are members of company unions or employee 
representation plans 

i holds office as president 

3 hold " " recording secretary 

i holds " " chairman 

i holds " " department representative 

Forty-seven Pinkerton spies, or more than % of the total number 
in trade unions, according to their own list, hold office in the union. 
Is there any question that spy agencies are hired primarily for 
Union-Prevention and Union-Smashing ? 

In any case, of one thing we may be certain employers who buy 
the service of the agencies know what they are paying for. And 
when r the agency can't deliver the goods, or where workers are not 
organizing, then the service is discontinued. Corporations Auxiliary 
found that out. On July 6, 1936, one of its salesmen, D-H, wrote a 
letter to his head office telling of a conversation he had had with 
Mr. F. W. Marcolin, the Store Superintendent of the Bailey Com- 
pany in Cleveland. Mr. Marcolin told him that the Bailey Company 
was going to discontinue the service of Corporations Auxiliary. 


D-H asked him why "and he stated they did not think at the pres- 
ent time the expense was justified and the information they were 
receiving was not worth $200.00 a month. Said they had no com- 
plaint about the service but the operator had not gotten into the 
union and all the information he was able to gather covered daily 
routine. Some suggestions had been good but not worth the expense, 
also there was apparently no union activity and they had decided to 

The Pinkerton agency met with a similar unhappy experience. 
They found that employers were not interested in their spy service 
unless they could take some action on the organizational activities 
of their workers. Mr. Meinbress, the superintendent of the San 
Francisco Pinkerton office, reported the sad news he had received 
from the general manager of the Western Pacific Railroad: 

Former client, friendly, said under the Eastman control they 
cannot discharge for labor activities, he knows pretty well who 
the agitators are but cannot help himself so does not believe in 
spending money at present for secret work when he cannot act on 
the information. I will keep up contact. 

Official, San Francisco Office. 

SENATOR LA FOLLETTE. Now apparently from this solicitor's 
report, while Mr. Eastman was coordinator, Mr. Meinbress 
found that under that situation employees of railroads are ex- 
tended the same protection of the Wagner Labor Relations 
Act, since it extends to all employees, did he not, Mr. Pinker- 

MR. PINKERTON. Yes, sir; it appears so. 

SENATOR LA FOLLETTE. So it would appear from this super- 
intendent's report that when your clients cannot discharge men 
for union activities, they have no use for your services, is that 

MR. PINKERTON. I don't think that is always true; no, sir. 


SENATOR LA FOLLETTE. I did not ask you if it was not always 
true. I asked you if it was not true. 

MR. PINKERTON. It appears from this report to be true. 

Had all employers of labor been as careful to obey the law as the 
general manager of the Western Pacific, then, in truth, the Pinker- 
tons would have been in a bad way. But fortunately for the Pinker- 
tons, this was not the case. Just as the Railway Labor Act extended 
protection to railway employees so the National Labor Relations 
Act (popularly known as the Wagner Act), extended that protec- 
tion to other workers in July 1935. The intent of Congress in passing 
the Wagner Act is plain, the language is simple and easy to under- 

Sec. 7. Employees shall have the right to self-organization, 
to form, join, or assist labor organizations, to bargain collec- 
tively through representatives of their own choosing, and to 
engage in concerted activities, for the purpose of collective bar- 
gaining or other mutual aid or protection. 

Sec. 8. It shall be an unfair labor practice for an employer 
(i) To interfere with, restrain, or coerce employees in the 
exercise of the rights guaranteed in section 7. 

It was a similar provision in the Railway Labor Act, plus the 
power of the strong railway unions, which kept the Western Pacific 
from hiring the Pinkertons. But many other employers throughout 
the country felt no such restraint. They did hire the Pinkertons and 
other agencies. And they did "interfere with, restrain, or coerce 
employees" in the exercise of their right to join unions. These 
employers were advised by eminent lawyers that they need not pay 
any attention to the Wagner Act because in their august opinion, 
the Act was unconstitutional. The National Committee of Lawyers 
of the American Liberty League, for example, took it upon itself to 
declare the Act unconstitutional. The Supreme Court of the United 
States, however, thought otherwise. On April 12, 1937 the Court 
declared the National Labor Relations Act constitutional. The 58 
Liberty League Lawyers were in error. 


One of the 5 cases that reached the Supreme Court in the Wagner 
Act decision was the Fruehauf Trailer Co. case. Unlike the Western 
Pacific, the management of this company felt that it did have the 
right (despite the Wagner Act) to discharge "agitators", i.e., 
union men. So it hired the Pinkerton agency to spy on its workers. 
The Pinkertons obliged. On complaint of the union, the members 
of the National Labor Relations Board examined the evidence and 
came to this conclusion: "The Board found that the workers had 
been discharged because of their union activity and that the com- 
pany's policy was to disrupt the local of the United Automo- 
bile Workers Federal Labor Union and so to defeat collective 

How was this done? Excerpts from the Board report show the 
steps. First, Martin, a Pinkerton spy is given employment in the 
plant. "He thereafter joined the union and eventually became its 
treasurer. He was thus able to procure a list of all the members of 
the union. He made reports more than once a week to the respond- 
ent [Fruehauf Trailer Co.], and the lists of members which he 
furnished were given to the respondent's superintendent, Halpin. 
With these lists in his hand Halpin went about the factory from 
time to time and warned various employees against union activities. 
The result of Martin's activities caused suspicion, unrest, and con- 
fusion among the employees . . . Completely armed by Martin 
with the necessary information the respondent determined to put a 
stop to all attempts on the part of its factory workers to form an 
efficient independent bargaining agency, and in furtherance of that 
purpose summarily discharged nine men and threatened three 
others with discharge ... As to the discharges we find: Nicholas 
Trusch was employed as a carpenter in the body shop of the re- 
spondent for five and a half years and had a good record, no fault 
ever having been found with his work or conduct. His foreman, 
Rosenbusch, asked him on July 15, 1935, 'Do you want your 
job or your union?' When Trusch replied that he would not give up 
the union he was discharged between 9 and 10 in the morning of 
the same day . . . We find that Trusch was discharged for the 


reason that he joined and assisted the union." The Board takes up 
the cases of the nine men, one by one, and its closing sentence is the 
same every time, "discharged for the reason that he joined and 
assisted the union." Here in graphic detail, in this N.L.R.B. re- 
port, is the story of industrial espionage. 

Not the whole story, however. There's one other angle. The dis- 
charged men can find no other jobs they are blacklisted every- 
where, because they dared to join the union. They are thrown on 
the public relief rolls. Let Mr. Edwin S. Smith, member of the 
N.L.R.B. appointed by the President, tell the tale: "I have never 
listened to anything more tragically un-American than stories of 
the discharged employees of the Fruehauf Trailer Co., victims of a 
labor spy. Man after man in the prime of life, of obvious character 
and courage, came before us to tell of the blows that had fallen on 
him for his crime of having joined a union. Here they were 
family men with wives and children on public relief, blacklisted 
from employment, so they claimed, in the city of Detroit, citizens 
whose only offense was that they had ventured in the land of the 
free to organize as employees to improve their working conditions. 
Their reward, as workers who had given their best to their employer, 
was to be hunted down by a hired spy like the lowest of criminals 
and thereafter tossed like useless metal on the scrap heap." 

You can see from the tone of his testimony that Mr. Smith is 
angry because he thinks an injustice was done. He was disturbed, 
too, because he saw in labor espionage a danger to our democratic 
institutions. He said as much at this hearing in April 1936. That 
was before the sit-down strike at General Motors and Chrysler 
occurred, and it should be full of meaning to those people who 
cannot understand why American workers have become so militant. 
Here is Mr. Smith's warning, "The aims of one group may be 
cordially detested by another, but for the stronger group to suppress 
the minority's right to express its opinion is to suppress democracy 
itself. Those who would encroach upon the civil liberties of any 
group are playing with dangerous and destructive fire. Democ- 
racy may be attacked from the right as well as from the left. The 


denial of civil liberties is itself an important step toward revolu- 

It's a familiar and oft-repeated story this suppression by the 
stronger group, of the workers' right to organize. In Duquesne, in 
1919, the minute any labor organizers stepped into the town they 
were clapped into jail. The mayor there boasted that no union 
could hold a meeting in Duquesne even if Jesus Christ were the 
organizer. And in Homestead, in 1933, Secretary of Labor Perkins 
found that the streets and parks and halls were closed to her the 
only place she could meet with a committee of steel workers was in 
the U. S. Post Office ! This sort of thing is still true in many parts 
of the United States in 1937 in spite of the Wagner Act. Unfortu- 
nately we cannot devote adequate space in these pages to these 
open violations of the workers' right to organize. Here we are con- 
cerned with the undercover violations, the wrecking of unions 
through the use of spies, as in the Fruehauf Trailer Co. case. 

You can easily imagine what the effect of industrial espionage has 
been on the workers. They don't have to read about stool-pigeons 
to know about them they know about them from sad experience. 
It is for that reason that many of them who see the necessity for 
joining a union, hesitate to do so. They are afraid. George A. Pat- 
terson, a steel worker, told the committee, " that there is an espion- 
age system in the steel plants ... is common talk amongst the 
employees at all times. They know it, and they feel it. They feel 
that at all times they are being watched. As we have tried to organ- 
ize, many a man would say 'We would like to come in, but it is just 
as much as our job is worth to join up.' They have said that many 
times. I can say that they are truthful in their opinion about that, 
because when we go around with the applications and ask the men 
to come into the organization they talk about stool-pigeons, and 
so on." 

Only through organization into unions can the workers protect 
their own interests. When N.I.R.A. gave them this right in 1933, 
the employers fell back on an old scheme to take the teeth out of 
such organizations. "The men have a right to organize? O.K. Let 


them organize. We will even help them we'll give them a plan 
for organization and put up the money to foot the bill. We'll back 
the men to the limit in forming unions company unions." 

It was truly amazing with what speed company unions sprang 
into existence in industries hitherto unorganized. N.I.R.A. was 
passed June 16, 1933. Before the end of the month plans for the 
formation of company unions were announced in the plants of 
U. S. Steel, Republic Steel, Weirton Steel, and Jones and Laughlin. 
The automobile industry showed the same lightning-like speed in 
the organization of company unions. The N.R.A. code in autos 
was approved on August 27, 1933. Ten days before, Chevrolet, 
Buick, Fisher Body and other General Motors subsidiaries had 
perfected their "representation" plans; the Chrysler Corporation 
followed in October. 

From all this undue haste, and from the fact that the employers 
were behind the company union plans, it becomes obvious even to 
people inexperienced in labor matters, that there must be some- 
thing fishy about company unions. There is. In a study called 
"The Economics of the Iron and Steel Industry," financed jointly 
by the Brookings Institution and the Falk Foundation, one 
sentence gives the whole show away: "The evidence shows con- 
clusively that the great majority of the plans (company unions) 
were favored and fostered by the companies in order to forestall 
outside unionization. 1 ' The cat's out of the bag. Here is the reason 
why some of the steel companies have been paying out a quarter 
of a million dollars every year to finance their company unions. 

Company unions have been set up "to forestall outside unioniza- 
tion." But, as we have seen, Union-Prevention is part of the 
province of the private detective agencies. Are they left out in the 
cold ? Not on your life. They are specialists in every kind of Union- 
Prevention. If it's company unions that are necessary to do the 
trick, they are prepared to make that part of their service. Thus the 
Butler System of Industrial Survey, New York, advises prospective 
clients, "Where it is desired that company unions be formed we 
first sell the idea to the workers and thereafter promote its develop- 


ment into completion. Hundreds of such organizations have been 
formed by us to date." 

Was the Butler System alone in the field? It was not. Railway 
Audit, we learn from one of their letters placed in evidence, knew 
all of the tricks of the company union game. Mr. L. D. Rice, vice 
president and general manager, gives a few pointers to Mr. W. H. 
Gray who is out in the field soliciting business. " We have been suc- 
cessful in assisting in starting a lot of employees' associations, and I 
think that you will find some of the manufacturers interested along 
this line. At the present time the non-union employees of Reading, 
Pa., get out a semi-monthly paper, and it is a mighty good one. It 
combats the union paper. Quite often they expose some of the 
things that the unions do. No doubt Mr. Ivey has a copy in Atlanta, 
and I am requesting him to send you one so that you can look over it. 

"Some of our people are very instrumental in assisting in the 
publication of this paper, as well as the entertainment, etc. that 
these non-union employees carry on. 

"You can also start the same kind of organizations in other tex- 
tile plants." 

This branch of the agencies' service the setting up of company 
unions was a good talking point when business was bad, i.e., 
where there was no "labor trouble." On those occasions spy agen- 
cies became "insurance salesmen," according to A. E. Lawson, 
formerly secretary of the National Corporation Service. Here is Mr. 
Lawson on the witness stand: 

SENATOR LA FOLLETTE. Now, when there were not any labor 
troubles, can you tell us how you got business then? 

MR. LAWSON. Well, we sold the business on a proposition of 
business insurance, "Protect yourself and find out what is go- 
ing on in your plant before trouble actually does occur." 

SENATOR LA FOLLETTE. Did you ever have occasions where 
the client would be assured in a situation of that kind that 
something could be done in the way of helping to build up 
company unions ? 


MR. LAWSON. Yes, I know of such cases . . . We put men 
in the Newton Steel Company at Newton Falls just after the 
plant was reopened for business and formed a company union 
there. We also formed a company union in the Taylor Win- 
field Company at Warren, Ohio, to of set any possibility of 
joining the outside union. 

SENATOR LA FOLLETTE. How did they go about setting up 
these company unions, if you know? 

MR. LAWSON. Well, they would put one man in as a leader/ 
furnish him with information as to bylaws and regulations of 
the company union. 

SENATOR LA FOLLETTE. Who usually prepared the bylaws, 
and so forth? 

MR. LAWSON. Well, we had probably 15 or 20 different set- 
ups from other manufacturing plants. 

SENATOR LA FOLLETTE. You would sell the client the one he 
liked best? 

MR. LAWSON. We would sell him the one that we thought 
would fit the plant best. 

SENATOR LA FOLLETTE. You usually got his approval of it 
before you started up? 

MR. LAWSON. Oh, certainly. 

(That does have a familiar ring, doesn't it? "Do you want an 
endowment policy, a 2o-year-life, or an annuity? We are prepared 
to sell you exactly the kind of insurance that is best suited to your 

One other point needs to be cleared up. How were the workers in 
the plants persuaded to throw in their lot with the company union? 
In many plants they had no choice it was a case of join the com- 
pany union or lose your job. But in some plants where the workers 
inclined toward their own union, what arguments were used to 
swing them into the company union? Mr. C. M. Kuhl, an operative 
of fourteen years experience with several agencies, answers that 
question. "These inside operators would talk and talk against the 


union, the American Federation of Labor, and use a point similar to 
this, ' Well why pay dues to a lot of organizers, presidents, secre- 
taries . . . ?' 

"And another, 'For instance, if we give a dollar here in our par- 
ticular local only a quarter stays here, and so much goes down to 
Columbus at the State headquarters and the rest goes to Washing- 
ton. So out of an actual dollar we put in the American Federation of 
Labor union why we only keep that quarter here. Now, if we keep a 
company union we don't pay any dues, and we save those dues, 
which will amount to $2 or $3 a month. " 

There is little doubt that these were effective arguments. The 
growth of company unions after 1933 was tremendous. And spy 
agencies played a great part in their formation. 

But the growth of legitimate trade unions after 1933 was also 
tremendous. This happened in spite of the poisonous activities of 
the spy agencies, which were so active in Union-Prevention and 
Union-Smashing. American labor after 1933 was on the march and 
trade unions were bound to gain strength in the face of any opposi- 
tion, no matter how powerful. But had it not been for the under- 
cover activities of the detective agencies, they would have grown 
even stronger. Of that there is no doubt. Senator La Follette lis- 
tened to the evidence for weeks. He was chairman of the committee 
that conducted the inquiry. He is in a position to know. Here is his 
opinion: "In the light of the testimony this committee has taken, 
the evidence is overwhelming, in the opinion of the chairman of this 
committee, that the injection of these labor spies in the unions, and 
the fact that they come to be in charge of union activities, get to be 
officers of unions, cart those records back and forth to the detective 
agency offices, report the names of men who apply for membership 
to the management of corporations, have demonstrated beyond 
any doubt in the minds of any fair-minded persons whatsoever, that 
the use of this labor espionage is demonstrated and proved to be one 
of the most effective weapons in destroying genuine labor collective 
bargaining activities on the part of workers." 

III. Spies at Work 

SO MUCH FOR what the agencies do. Now how do they do it? 
What is the technique for Union-Prevention and Union-Smash- 

Let's begin with the spy. He may be brought into the factory 
from the outside and given a job, as Martin, the Pinkerton spy, 
was brought into the Fruehauf Trailer plant. Or he may be one of 
the men already at work in the plant, who is persuaded or tricked 
into becoming a spy. (How that is done is a long and interesting 
story which will be told in the next chapter.) But in either case, 
whether he is an outside operative brought into the plant, or one of 
the workers already there, he does his day's work at the bench or on 
the belt just as the other workmen do. Few people in the plant 
know who he is maybe only the plant superintendent or the 
personnel director. The foreman seldom knows. The workers seldom 
know. For the stool-pigeon is one of them a worker. He eats 
with them, talks as they do, complains about the same injustices, 
goes out with them at night to the movies or to the union meetings. 
The workers know only that they are being spied on, but who the 
spy is they don't know. After they find out, if they ever do, then of 
course it's easy to think back to a hundred and one little incidents 
which should have made them suspicious; but before they find 
out it's not so easy very often the exposed stool-pigeon is the 
man whom they would have least suspected. 

It's the spy's job to make friends with as many workers as pos- 
sible, win their confidence, and listen to their talk. He must keep 
his eyes and ears open at all times and report what he sees and 
hears. Here are the specific instructions of the Railway Audit & 
Inspection Co. to one of its operatives in a knitting mill: 



While working in this plant it will be necessary that you do 
whatever work you are assigned in such a manner as to be 
pleasing to all concerned and not cause you to be laid off 
or discharged for not carrying out such orders as are given 
you . . . 

It will be necessary that you mingle with the employees so 
that you can win their confidence to such an extent that the 
men will confide in you and will inform you as to just what 
they are doing, etc. 

It will be necessary that you render a good, detailed, lengthy 
report each and every day covering conditions as you find them, 
reporting in detail the conversations you hold, those you over- 
hear, etc., and try to make each day's work just a little more 
interesting than the day's report before, and we feel sure if 
you will be observant to all that is going on around you, you 
will be able to report many things of value to this client and will 
be kept working there indefinitely. 

You are to mail your reports promptly to the writer, to Mr. 
W. A. Schraisen, post office box 793, Philadelphia, Pa. Do not 
hold up your reports and mail them in a couple at a time, but 
let them come in promptly each day, so that the client will 
receive the information before it is too old. 

Report on conditions as you find them, also offer any sug- 
gestions you feel will be of value to the client be on the alert 
for what is taking place, report all you possibly can learn re- 
garding the attitude toward the company, their immediate 
superiors, one another, etc. whether there is any union 
agitation, etc., any loafing, stealing, waste of time, materials, 
etc., how they do their work, the good as well as the bad. On 
Sundays and when not working in the plant it will be necessary 
that you render a report, and in order to do so, so that the 
client can be billed for the day, it will be essential that you 
associate with some of the employees outside, i.e., get out 
among them, visit them, so that they will be able to obtain 
from some of the employees information that you may be able 


to secure in no other way for much information of value to 
the client is gained in this way. 

Therefore, it is essential that you make as many contacts as 
you possibly can, so as to be able to cover as much ground as 
you can possibly do, meet some of the employees on your way 
to work, in the mornings, also during lunch hour, and on your 
way home in the evenings, as well as by making appointments 
to meet some of them in the evenings in order to become better 
acquainted with them. This you will not be able to do all at 
once, but you will gradually work up to this as you become better 
acquainted with the various employees, and it is desired that 
you start out the first few days easy and not be too forward, 
so as to win the confidence of the employees and be able to 
continue indefinitely. 

The usual practice is for the spy to write a daily report, sign it 
with his code number, put it in an envelope without a return ad- 
dress, and mail it to a post office box in the city where the agency 
official who is in charge of that particular job is located. 

The post office box is not rented in the real name of the agency 
or of any of its operatives. It is rented under a fake name. The spy 
report is picked up each day, brought to the agency office and read 
by the agency official who is handling that job. This official then 
edits the report. He corrects the spelling and the grammar, elimi- 
nates the irrelevant material, and fixes up the report in general. 
Sometimes he really fixes it up not only subtracts unimportant 
details from the original, but also adds important and untrue 
details to the original. Next, the edited report is typed and sent to 
the client. 

Then what? The axe falls. Before long, the manager may be called 
into the superintendent's office and told to discharge John Smith, 
Joe Brown, and several others. "But why?" protests the manager. 
"Smith is one of my best workers, and Brown is steady and reliable, 
he's worked here for seven years. And there's nothing wrong with 
the other boys you want me to fire. What's it all about?" 



"You're wrong, sir, there is something wrong with all these men. 
They're agitators. They're talking union to the men. We can't 
have that here. They must go," replies the superintendent. "And 
er be sure you don't tell them why you're firing them. Think up 
some excuse drunkenness, or being late, or wasting materials 
anything. But get rid of them." 

Now let's look at the successive steps: 


Of course the men who are fired are not fooled by 
the manager's lame excuses. They know full well why 
they have been fired. The other workers in the plant 
know, too. They see that because these men were 
union-conscious, or active in the union, they lost their 



jobs. Naturally, these other workers are afraid. When the union or- 
ganizer tries to interest them in the union, they shy away. The baby 
union is smothered in infancy. Or, if the workers are already mem- 
bers of the union, they turn up less frequently at meetings and 
after a while, they drop out. The grown-up union is strangled. The 
spy has done his job. 

Not all of it, however. So far his job has been easy. But he has 
other work to do. And this other work is more difficult. Where there 
is a union, he must get into it and make it ineffective, cause dissen- 
sion, break it up if possible. That's harder. But it is done. Remem- 
ber the Flint local of 22,000 in 1935 which slid down to 122 in 1936; 
remember Roszel who was able in Hartford, to force a membership 
of 2500 down to 75. Exactly how is it done how does the spy go 
about sabotaging the union ? 

We get a clue from part of a spy report of a union meeting: 

Erie, Nov. lyth, 1933. 

Local No. 1 01. I. A. of M., met at C. L. U. Hall, 1703 State 
at Friday evening. 

Meeting called to order promptly at 8 P.M., President C 
Hall presiding, Financial Sec'y Henry Searle, also present. 
(These two men both work at the Standard Stoker.) 

Seven members in attendance. 

Communication from grand lodge, acknowledging receipt 
of letter from local #101, addressed to Mr. Brown of Cleve- 
land, and who is organizer from this district, and asking 
the grand lodge to furnish an organizer for Erie, grand 
lodge stated the matter was rec'g attention and would answer 

No new applications, no initiations. 

[It was] Suggested that a comm't'ee of three out of work 
members be appointed to act as an organizing com't'ee and 
look up several men who had paid in sums of .25 cts to $2. on 
applications and had not been heard from since. This com't'ee 
was to go out and look these men up and also try to see other 


machinists and get them to join the union and to pay their 
own expenses and serve without pay. 

This was called absurd by Shults, who said if those who 
were working were not interested enough in trying to better 
their conditions ... it was absurd to think that out of work 
members were going to spend time and money trying to or- 
ganize, this and the fact that the grand lodge was thinking 
the matter over of giving Erie some help in organizing work, 
some of the other members then spoke along the same lines 
and criticized the grand lodge for not getting on the job and 
the matter was allowed to drop, no action taken . . . 

D. G. 

Here we see the cunning spy carrying on his destructive work in- 
side the union. Follow the steps. One of the members has a good 
idea. Some of the unionists are out of work nothing to do, and 
lots of free time. Let three of them act as a committee whose job it 
shall be to bring more members into the union. Let them begin by 
rounding up those machinists who have already filed their applica- 
tions to join, and have even paid in some money. Obviously all that 
these workers need is just one more push and they'll be in the 
union. Next, let the committee go after other machinists and try to 
get them to join. It's a good idea because if the committee is success- 
ful the union will have been strengthened with the addition of new 
members; if the committee is unsuccessful, nothing is lost, since the 
members of the committee were idle anyway. 

Now what happens? Up hops Shults who calls the plan "absurd." 
When he is through talking, not only is the matter "allowed to drop, 
no action taken," but some of the members have been led to criticize 
"the grand lodge for not getting on the job" Net result: plan for in- 
creasing membership spiked; also, dissatisfaction with the 
grand lodge instilled in the minds of several members. A good 
night's work for anyone interested in hurting, not helping the 

Who is responsible ? Shults is responsible, according to the report 


of D. G., the code initial of the spy. But is Shults also a spy? He is. 
Shults is D. G., and D. G. is Shults. They are one and the same. 
When D. G. here reports on the fine wrecking job done by Shults, 
he is boasting about his own exploits. 

Now let us attend another meeting of the machinists' local in 
Erie, two weeks later. With the help of the report of D. G. (Shults) 
we can see what happens: 

Erie, Dec. ist, 1933. 

Meeting Called to Order by President Hall with eleven 
members present . . . 

The new officers for the coming year were elected no great 
change in personnel, and some of the newly elected men have 
not been members a year, the constitution of the machinist 
calls for a membership of one year before eligible to hold office, 
but the new members looked harmless so thought best not to 

Federal Local organizer, Winters, had requested some of the 
members to let him come in and explain his pet scheme of 
taking all machinist into the Federal Local then telling them 
that they must join the machinist Union; the member who 
proposed his coming in stated that Winters advised that his 
organizing of the Olacker Mfg. Co. was being held up because 
the machinist at this plant refused to pay in $5.00 to join the 
Machinist Union while it only cost the rest 2.00 to join the 
Federal Local, and unless he could take the machinist in at 
2.00 he (Winters) couldn't organize the plant. Several members 
seemed to think it was all right, but after some discussion a 
member (Shults) took the floor and objected to allowing the 
man to enter, told them his scheme was unconstitutional and 
that he knew it, that the members of this Machinist Local 
ought to know if they read the constitution and that any man 
who wanted to join a trade and didn't think it was worth 5.00 
to belong probably wouldn't amount to much as a member, 
and would probably expect the Local to help him get a raise the 


first week he belonged, that the thing to do was to settle 
it once and for all. Tell Mr. Winters that machinist must 
join the machinist local or else they couldn't join anything 
in Erie, this action was taken and Winters was denied the 
Nothing else of interest transpired . . . 

D. G. 

Thus Shults, the spy, "settles it once and for all." The union 
organizer has trouble enrolling new members because the initial 
fee is too high; he has a plan to get over this difficulty which he 
wants to explain to the local. But Shults is on the job. He is inter- 
ested in preventing organization. He defeats the plan by pointing 
out that it is unconstitutional. Result? "Winters was denied the 

Notice that Shults is really no stickler for the constitution. He 
uses it only where he needs to. He points out that several of the 
newly elected officers of the union have been elected contrary to 
the provisions of the constitution but he doesn't object because 
"the new members looked harmless." 

Everything under control Shults's control. A few more meet- 
ings like these two with Shults squelching every proposed scheme 
for getting new members, and soon there won't be any members at 
all. The union will be dead. 

The technique is plain. Shults is obviously bright. He knows how 
to talk. He gives plausible arguments. He is ever on the watch 
against the interests of the union. And he has applied himself to the 
task. How many members of a union ever bother really to learn the 
constitution? Very few. The spy does it's part of his technique of 
destruction. How many members of a union ever try to become an 
officer in the union ? Very few. Most workers are shy, or modest, or 
haven't time. Not so the spy. He has the agency's orders to do just 
that to become an officer in the union. How many members of a 
union care to, or dare to, serve on committees in the union? Very 
few. The spy does it's an important part of his technique of de- 


struction. Most union members are quite content to let the other 
fellow do the talking and the working they prefer to play a pas- 
sive role. But the spy has no choice to do his best work, he must 
play an active role. Most workers do not consider that it is their job 
to build up and strengthen their union; but the spy knows that it is 
his job to tear down and weaken the union. And there's where the spy 
has the edge over the honest trade unionists. 

Let's watch another spy at work. This time the story is contained 
in the sworn affidavit of Charles Killinger, an automobile union 
organizer from Michigan: 

I, Charles Killinger, being duly sworn, deposes and says: 
I have been an active member of the union for the last three 
years and am at present a part-time organizer for the union. 
John Stott was on the legislative committee of the Amalga- 
mated Local #156 and was also chairman of the Welfare com- 
mittee. Chairmanship of the welfare committee gave him an 
opportunity to visit a number of union people who were sick 
at various times. He visited me some months ago when I was 
ill, and after consoling with me about my illness, began to 
abuse the work being done by Wyndham Mortimer and Rob- 
ert Travis, the international organizers who had been sent into 
Flint during the summer. The executive board of the Local 
#156 was particularly quiescent as far as organization went and 
it was the unceasing work of Mortimer and then of Travis 
which led to the building up of the union. This was apparent to 
everyone but bothered a number of individuals who seemed to 
delight in keeping the union as small as possible. On the occa- 
sion of his visit to me, Stott said about Mortimer and Travis, 
"They are no good. They don't do any work . . . When we 
get rid of Mortimer and Travis we will be able to do something 
here" . . . 

Stott was always very active on the floor of the meetings, 
took part in all discussions, but always managed to raise hair- 
splitting questions on motions before the assembly, tending to 


confuse many of the younger members and to check decisive 
action by the union. 


Spy Stott's technique is clear from this affidavit. In the last 
paragraph, we find him using tactics similar to those employed by 
Shults, raising "hair-splitting questions tending to confuse many 
of the younger members and to check decisive action by the union." 
Anyone who has ever attended a meeting in which endless time is 
spent in debating hair-splitting questions knows how very annoying 
that can be. If it happens at every meeting and Shults and Stott 
were there to make it happen then many of the members begin 
to look upon union meetings as a bore to be avoided if possible, 
which is exactly what the spies want to accomplish. 

Equally annoying, if not more so, is belonging to an organization 
which sets up committees to perform certain tasks which somehow 
never get done. The spy knows this and frequently worms his way 
on to as many committees as possible with the sole purpose of sa- 
botaging their work. We learn from Killinger's affidavit that Stott, 
the spy, was on both the legislative and the welfare committees. 
We learn from another affidavit, that of Walter Reed, active union 
member of Local #156, that Stott was also elected secretary of the 
negotiating or grievance committee. How did he perform his duties 
on that important committee? Reed tells us: 

The committee didn't function in spite of the fact that there 
were cases to be taken up. October, 1936 we had a meeting of 
the Chevrolet unit called by Robert Travis for the purpose of 
discussing what grievances they should take up before the man- 
agement. The negotiating committee was very insistent that 
they should not go down because they had no grievances. We 
said that we had general grievances that should be taken up, 
such as seniority rights, shop conditions, and hours. The com- 
mittee said they wanted individual grievances, signed, and 
said that was all they could handle. Even though there were 
some men with personal grievances, the committee refused, 


and Stott made a speech saying that these men should not go 
down to the management, so nothing was done about it. 

What will be the temper of those men with grievances who go to 
the committee set up by the union to handle their cases when they 
find the committee will do nothing for them? The spy knows that 
this "nothing was done about it" is a very effective way of causing 
dissatisfaction. Equally effective is Stott's other tactic as chairman 
of the welfare committee, that of visiting the members and buzzing 
into their ears criticisms of the leadership. Now it is true that the 
leadership of many unions is not above criticism. Often the leader- 
ship is stupid, self-satisfied, inactive asleep at the switch. Such 
leadership should, of course, be criticized severely. But the spy is 
not concerned with legitimate criticism where it is truly justified. 
He criticizes all leadership but his own one more tactic in his 
arsenal of weapons against unions. 

We see this clearly in the activity of another spy, Francis Arthur 
Roszel. We have met the worthy Mr. Roszel before. In 1935, you 
remember, he was secretary of a local in Hartford which he suc- 
ceeded in smashing. He was the spy who answered the question- 
naire on dick agencies sent out by the A. F. of L. He was exposed 
and one year later he turns up again as a member of a local of 
the United Automobile Workers in Michigan! Here he continues 
his activity as stool-pigeon and union-smasher. Part of another 
sworn affidavit shows Roszel at work: 

The union organizer connected with the local union at this 
plant was and is Stanley Novak. Novak is a Pole. Roszel 
continually agitated the members of the union against "foreign" 
and Polish leadership in the union, with the quite apparent 
objective of creating dissension and causing Novak to be 

Notwithstanding the fact that Roszel went on the picket line 
from time to time during the strike, he continually agitated 
among the men, urging them to go back to work. His line was 
that the strike had been called by a mere handful of men, that 


the members of the Union had not been consulted, etc. Here 
again was an attack upon the leadership and an effort to break 
the strike. 

Shults, Stott, and Roszel were evidently able hard-working 
spies, well versed in the tactics best suited to Union-Smashing. 
Now try to imagine a man who combines all the "virtues" of all 
three of them and you have a picture of Bart Furey, a spy planted 
in the Electric Auto-Lite Company of Toledo in 1934. Furey was 
Shults, Stott, and Roszel all rolled into one. Like Shults, he was 
familiar with the constitution and parliamentary procedure; in 
addition, "He knew the international rules; he even knew the inter- 
national officers . . . He knew them personally, man to man, all 
the international executive officers." Like Stott, he "handled" the 
grievances of the men, i.e., he did nothing about them. "It seemed 
as if he would go so far but he would not go out of his road to help 
these boys on their grievances . . . the grievances would pile up." 
Like Roszel in Hartford, Furey became an officer in the union 
first, chairman of the executive shop committee, and later president 
of the union; like Roszel in Michigan, Furey attacked the leader- 
ship witness this sworn affidavit by Edith Roberts: 

I had been very active in the union, and was one of the lead- 
ers among the girls. I was on the various committees of the 
union. But after refusing this offer [Furey asked Miss Roberts 
"to become a spy] Furey got after me in the union and told the 
others he didn't want me on any of the committees of the 
union. He told people not to vote for me, saying to several that 
she should not be put on the committee otherwise he would not 
serve as chairman since "she was too dumb, she blocks every- 
thing I try to put across." He went even further than that, 
asking various people around the shop to sign a petition to have 
me ousted from my job in the shop. 

I told the story of his offer to me to several people in the 
union, but he had them so wrapped around his finger that no 
one would believe the story. On two different occasions after 


the conversation with him and my refusal of the offer, I have 
received anonymous letters which were put under my door 
telling me to keep my mouth shut ... I am and was an active 
militant union leader among the women in the shop and was 
constantly trying to bring the women forward in the union. 
Furey did everything he could to get me removed from any 
position of influence, after I had turned down his offer. 

Also in the record, is another affidavit, by Homer Martin, con- 
cerning Furey's many attempts to split up Local 12; and his en- 
deavor "in every way possible to write such provisions into the 
International Constitution as would completely emasculate the 
International Union and create a loosely-federated group of local 
unions. This move by Furey was only defeated because of the 
staunchness of the other members of that committee." 

A very busy spy was Mr. Bart Furey. Let it be said of him, in all 
fairness, that he failed in the end, not because of his own weakness, 
but because of the strength of some of the union members; not be- 
cause he did not take seriously his job of Union-Smashing, but be- 
cause opposed to him were some workers who took seriously their 
job of Union-Building. 

Still another tactic for Union-Smashing is that of robbing the 
treasury. Too many one-time members of unions have lost faith in 
trade unionism because the treasurer of their local ran off with the 
money. Very often that treasurer is a spy. In this connection, two 
affidavits are in the record concerning the activities of Richard 
Adlen, a spy. "Adlen was . . . always prominent in handling social 
affairs and on several occasions wormed his way into a position in 
the union where he could handle the finances. He has on a number 
of occasions been accused of misappropriating funds or not properly 
accounting for funds entrusted to him by the union . . . Adlen 
was a part of a committee that handled the finances for a big labor 
day picnic in 1934. They were alleged to have made a profit of 
$1200.00 and we never could get hold of the accounts. It was in- 
vestigated by the union, but only $1.49 was turned in." 


Spies are on to the fact that it doesn't take more than one or two 
such raids on the union treasury before unions of several thousand 
members are shaken down to a handful. Spies are also on to the fact 
that while the strike is a useful effective trade-union weapon, an 
ill-advised and ill-timed strike is dangerous for a union so they 
do what they can to start such strikes. Spies are on to the fact that 
for union officials to conclude a sell-out agreement with an employer 
destroys the morale of the union members so they do what they 
can to effect such agreements. Spies are on to any and every method 
of Union-Smashing and Union-Prevention. They do all they can 
to make use of those methods. 

No recital of spy activities along these lines is complete without 
the story of Louis Foster who single-handed, it appears, was able 
to forestall the unionization of thousands of workers. This story is 
in the record. It is sworn to by John D. Lengel, for eight years the 
business agent for the International Association of Machinists in 
the northern New Jersey area. Here is part of Mr. Lengel's account 
of the activities of spy Louis Foster: 

In about May 1934, Louis Foster, without any solicitation 
on the part of the union, [local #340, Newark, N. J.], applied 
for membership in that local. He stated that he was, at that 
time, working in the Worthington Pump Company at Harrison, 
New Jersey. 

Louis Foster immediately became a very active union member. 
He volunteered for work on all Committees and took a very active 
part in discussions on the floor during the meetings of the local. 
He was a very intelligent and able speaker and was recognized 
by the men as having some of the qualities of leadership. 

He volunteered for work on the Entertainment Committee to 
raise funds for the union. This job involved a lot of work and 
time on the part of the member who took the responsibility. 
Foster stated that he wanted the roster of members of the local in 
order to send out invitations to the entertainment for the purpose of 
raising money for the lodge. 'The roster was turned over to him. 


A year later I discovered that the manufacturers in the vicinity had a 
complete list of the members of local #340, as of March 1935. 
This was the same list that had been turned over to Foster 
and could have only been secured through him. 

During this year Foster volunteered to be the representative 

from the machinists union to the convention of the New Jersey 

State Federation of Labor. This position involves personal 

expenses on the part of the member who volunteers, but Foster 

was willing to assume the expense and the time involved. 

The Union, local #340, was having great difficulty in secur- 
ing new members. The reason being that the machinists in this 
area were of the opinion that they could not be protected in 
their jobs if they joined the union. It was common knowledge 
that the manufacturers were able to find out which employees had 
signed applications in the union and thus discharged them. In 
and about September 1935, I held a meeting of the employees 
of the Lionel Manufacturing Company of Irvington, New 
Jersey. The meeting was held at the Labor Lyceum in Newark. 
Foster was present at that meeting and took a very active part in it. 
About 1 20 employees attended the meeting out of which about 
30 signed applications giving their names and addresses. 
About two days after the meeting^ approximately 26 out of the JO 
who had given their names and addresses were discharged. 
Foster had access to the applications and no doubt turned them 
over to the employer. 

During this year Foster succeeded in being elected as represent- 
ative from the lodge to the District Council of Machinists . About 
this time there appeared to be a good deal of internal disputes 
within the union. One group in the union contended that I was 
not properly fulfilling my duties as business agent and was not 
succeeding in getting many new members. Foster took the 
leadership of this faction which attempted to oust me as busi- 
ness agent . . . However, I was elected. Later in the year, 
despite the fact that Foster had been claiming that I was get- 
ting too much salary and it ought to be reduced, he made a mo- 


tion on the floor that I be presented with $100.00 Christmas bonus 
and a new car. This manoeuver on bis part caused considerable 
confusion and dissatisfaction in the union. 

In the early part of 1936, the union started a campaign to 
organize the machinists in the automobile repair companies in 
Newark. At our first organizational meeting we had a large 
crowd of enthusiastic prospective members. Within a few weeks 
every company in which we were able to secure applications, got 
information as to which of their employees had signed with the 
union and there were wholesale discharges . . . 

I have recently discovered that Louis Foster has been in the 
employ of the manufacturers in the vicinity by virtue of his 
employment as a spy for the International Auxiliary Corpora- 
tion. It is now clear to me that he has been responsible for the 
prevention of organization in my territory; that he has been a de- 
structive force in the union; that he prevented the real organization 
for collective bargaining of the 20,000 employees who are eligible 
for membership in my territory. 

Just look back over the italicized parts of that quotation. Some 
of those activities might be indulged in by any honest union mem- 
ber. Some of them only a spy would engage in. Take them altogether 
and you have almost a perfect picture of the spy technique of 
Union-Prevention and Union-Smashing. 

IV. The Gentle Art of Hooking 

ANDREWS . . . Letteer . . . Martin . . . Shults . . . Stott 
. . . Roszel . . . Furey . . . Foster . . . and a host of others 
all spies. Capable, energetic men, some of them with real qualities 
of leadership all stool-pigeons Why ? What happened to these 
competent shrewd men and the thousands of others like them, 
which inclined them toward a career of betrayal of their fellow- 
workers ? 

Some were inclined that way to begin with and welcomed the 
opportunity to pick up easy money. Others were unfortunate they 
had the bad luck of being so placed that they could be of service to 
the spy agencies. It may have been because of the very fact that 
they were so smart; it may have been because they held key posi- 
tions in the union; it may have been only because they happened 
to be working in a particular department in a factory. Whatever 
the reason, they were in a position where they could be of use to the 
agency. They were needed for a special job. 

So they were "hooked." 

"Hooking" is the technical term for the conversion, by an agency 
operative, of an honest workman into a spy. How is it done ? 

Mr. Williams, a worker, comes home some night to find a stranger 
in his house waiting for him. The stranger, an affable, courteous 
gentleman, says he represents a group of the stockholders who are 
interested in finding out whether the plant is being run as efficiently 
as possible, whether the management is fair to the men, etc. Would 
Mr. Williams be interested in supplying this information which 
would be of great use to the stockholders and would harm nobody? 
Of course, the stockholders would pay him for his trouble say $15 
a week for writing a daily report. Mr. Williams, unsuspecting and 



in need of the extra money, agrees. He understands that secrecy 
will be necessary because the stockholders do not want to act upon 
their findings until they have collected all the facts. So he consents to 
write a daily report to a box number in another city. He is paid $15 
in cash in advance for the first week and he signs a receipt. All is well. 

But not for long. Another week or two goes by and then the stranger 
in another visit, suggests that he's slipping his work isn't as good 
as it should be. "We want more of what the men are talking about, 
any complaints they have, any union activity, etc." At this point, 
Mr. Williams may become suspicious and balk at the idea. He may 
then be persuaded that clearly he would be doing no wrong if he 
wrote his reports as suggested because all that the stockholders are 
interested in is tracking down the Communists, agitators, and 
troublemakers. So he continues, making his reports "better," as 
suggested. The extra money comes in handy all this while so that 
when he finally realizes that he has become a paid stool-pigeon it's 
hard for him to give it up. He is "hooked." 

If, however, he realizes earlier that there is something shady 
about the whole business and decides to quit, he may be gently re- 
minded that he has been receiving money for spying, and what 
would his fellow workers think of him when they are shown his 
signed receipts? A strong man faced with this possibility decides to 
come clean anyway, tell his fellow workers he has been framed, and 
see what happens. A weak man is frightened and remains 
"hooked." He works in the plant as before, draws his usual wages 
as a workman, and writes daily spy reports on the activities of his 
friends in the factory. 

The record of the La Follette committee hearings is studded with 
cases of such hooking of innocent men. Even the agency heads ad- 
mitted it was a common practice with them (though some of them 
had an aversion to the term "hooking" they preferred to say 
"employing" or "making contact with"). Mr. Kuhl, the operative 
with 14 years experience who knows every angle of the business, 
was a willing witness he had decided to quit the business. Here is 
the record of his testimony on hooking: 


SENATOR LA FOLLETTE. Have you ever done any hooking or 
roping ? 
MR. KUHL. Yes, sir. 

SENATOR LA FOLLETTE. How do yOU do that? 

MR. KUHL. Well, first you look your prospect over, and if he is 
married that is preferable. If he is financially hard up, that is 
number two. If his wife wants more money or he hasn't got a 
car, that all counts. And you go offer him this extra money, 
naturally you don't tell him what you want him for. You have 
got some story that you are representing some bankers or some 
bondholders or an insurance company and they want to know 
what goes on in there. 

SENATOR LA FOLLETTE. After a fellow gets hooked suppose he 
wants to get unhooked; is that difficult for him? 

MR. KUHL. Well, if he is a good man and you don't want to 
lose him, because they are hard to hook, you will try to keep 
him with you. You have his receipts, and probably he will 
sign a receipt with a number, and he says "Aw, hell, that don't 
mean anything. That is only a number." But still you have his 
handwriting where he wrote in his original reports. 

Once hooked, it becomes the operative's next job to get himself 
elected to some office in the union so he can have ready access to the 
names of the members to be reported to the agency to be 
reported to the firm to be discharged. Roy Williams was one 
such operative. Here is his affidavit: 

I, Roy Williams, of my own free will do voluntarily ac- 
knowledge I have been in the employ of the Corporations 
Auxiliary Corporation as espionage operative and at the same 
time and during the same period I was the elected and active 
Recording Secy. & Trustee of the Graham-Paige local of the 
United Automobile Workers. Signed . Roy WlLLIAMS 




Richard Frankensteen, one of the witnesses to this confession, 
has now become a member of the executive board of the United 
Automobile Workers. In his testimony to the La Follette com- 
mittee, he made the following statement about Mr. Williams. "He 
was, I believe, the best liked and most popular man in Graham- 
Paige Motor Company. He worked there for 17 years. He was very 
well thought of. He was elected to the position of recording secre- 
tary, and this year is chairman of the board of trustees. He had 
worked there for 17 years and only during the last 3 years has he 
been hired by the Corporations Auxiliary. He was hooked into it. 
By that I mean they got him in; they roped him. He did not know 
what it was about until they got him in. Then when he tried to 
get out I understand that a Mr. H. L. Madison urged him to stay 
in told him his work was perfectly all right, that he should stay, 
there was nothing wrong, that the Corporations Auxiliary was not 
the same type as the other agencies and he should certainly stay 
there. So the fellow, after 17 years in the plant, with two children 
is out on the street, without a job. I don't know whether the Cor- 
porations Auxiliary will take care of him or not. 

"That man was not a typical spy. It was not his ambition to be- 
come a stool-pigeon, or spy, or, as we call them, a rat. He did not 
mean to be that at all, he was just hooked into it." 

The Roy Williams tragedy is not unusual. It is typical. An ex- 
officer of the National Corporation Service admitted that of some 300 
operatives upon whom he had kept records, over 200 were hooked 
men. The approach is nearly always the same for all the agencies. 
Mr. Gray, roving operative for Railway Audit, is on the stand: 

SENATOR LA FOLLETTE. Now tell the committee, Mr. Gray, 
just how you approach these men. For instance, suppose there 
is a labor dispute going on and the Railway Audit & Inspection 
Co. is assigned to the job by a client. Now just how would 
you go about it? Suppose you found the type of man you 
thought was all right; just what kind of sales talk would you 
give him to get him to be your contact man ? 


MR. GRAY. Well, perhaps I would approach him as an insur- 
ance inspector. 

SENATOR LA FOLLETTE. You never revealed your connection, 
did you, at the outset? 

MR. GRAY. Oh, no. 

SENATOR LA FOLLETTE. As connected with the Railway Audit 
& Inspection Co. ? 

MR. GRAY. No, sir; no sir. 

Notice how positive Mr. Gray is that he never reveals his con- 
nection. There's a reason. It's a Railway Audit rule which is made 
very plain to all contact men. On May 24, 1935, Gray was reminded 
of that rule in a letter from his superior, L. D. Rice, vice-president. 
Rice is short and to the point. "As to hooked men ... we never 
let them know who they are working for." But Gray is not at a loss 
there are plenty of ways of representing himself. He need not 
always pose as an insurance inspector. He might be a newspaper 
man. Or, 

SENATOR LA FOLLETTE. Have you ever suggested or inferred 
that you were representative of minority stockholders that 
were dissatisfied with the management ? 

MR. GRAY. Well, I might have; yes. 

SENATOR LA FOLLETTE. That is one of the ways, is it not? 

MR. GRAY. Yes; that is one of the ways. I might have done 

SENATOR LA FOLLETTE. When the N.R.A. was still a law did 
you ever suggest to any of these men that you wanted to con- 
tact, that you were kind of checking up to find out how the 
N.R.A. was going, and leaving them with the impression that 
they might be engaged in a kind of patriotic effort on the part 
of the Government ? 

MR. GRAY. No, Sir. 

SENATOR LA FOLLETTE. You did not use that? 
MR. GRAY. I cannot recall using that one; no, sir. 


SENATOR LA FOLLETTE. I am surprised. You seem to be a 
very smart man. 

MR. GRAY. I am just too smart to use that one, because that is 
involving the Government. 

Maybe Gray of Railway Audit was telling the truth maybe he 
was too smart to pose as a government official. But there is sworn 
testimony in the record that a Pinkerton operative did use exactly 
that line in trying to hook Charles Rigby, an Auto-Lite worker of 
Toledo, Ohio. Rigby would have been a good catch because he was 
a militant union man, chairman of his local. Perhaps the Pinkerton 
operative, in his anxiety to hook a man especially valuable at that 
time because of a strike situation, may be forgiven for not being as 
smart as Gray. The testimony of Rigby was particularly dramatic 
because the Pink who approached him was in the Senate cham- 
ber and heard every word of it. Rigby pointed him out as he 

SENATOR THOMAS. Mr. Rigby, has any attempt ever been 
made to hook you ? 

MR. RIGBY. Yes, sir; positively. 


MR. RIGBY. A month and a half after Bart Furey came into 
the plant there was a man approached me at my house. He 
came into my home and he said he wanted to see me. He was a 
very well-educated man, dignified. He said he wanted to see 
me about something personal. My wife was sitting there and I 
said, "I am sorry but," I said, "I will not talk to you unless 
my wife is present." "Well," he said, "All right, it does not 
make much difference." 

SENATOR THOMAS. Did the man give you his name? 

MR. RIGBY. Yes. 

SENATOR THOMAS. What was it? 

MR. RIGBY. R. L. Bronson. He went on to state he was a 
representative of the N.R.A. 


SENATOR THOMAS. He said he represented the N.R.A.? 
MR. RIGBY. A representative of the N.R.A.; yes, sir. 
SENATOR THOMAS. How could anyone represent the N.R.A. ? 
MR. RIGBY. I do not know. He was making investigations, an 
investigator of the N.R.A. 

SENATOR THOMAS. A Government official? 
MR. RIGBY. Yes, sir. 

SENATOR THOMAS. Did he mention that he was connected 
with the Government? 

MR. RIGBY. Yes; that he was compiling statistics regarding 
chiseling and where they were paying low wages and they were 
working the workers long hours, above the code, and he said 
the Government wanted that, and he asked me if I could be of 
any service, if I would help him out. I said, "Certainly," I said, 
"I don't see any harm in that." I said, "Anything to help my 
fellow workers or help the Government," I said, "That is my 
duty." He said, "Well, the Government has appropriated so 
much money to compile these statistics." I said, "Well, as far 
as the money is concerned I would gladly work for nothing in 
order to get things straightened out, if I could be instrumental 
in doing that I would gladly do it for nothing." He said, "Well, 
the Government does not ask you to work for nothing." He 
said, "We will pay you $20 a week." He went on and he talked 
and talked. 

SENATOR THOMAS. By "we" did he mean "we" or the Gov- 
ernment will pay you $20 a week? 

MR. RIGBY. The Government; the way he talked to me it 
was the Government. As I get it, they had to send the highest 
official. I never knew it until today, but they sent one of the 
highest officials of the Pinkerton Detective Agency to frame 
me and my family. 

SENATOR THOMAS. Did you ever see Bronson again? 

MR. RIGBY. I saw him three times, three or four times, and 


the last time he came to my house I told the business agent [of 
the union] . . . and he said, "Charlie," he said, "you have 
been framed." Well, after that I thought, "Well, I will see him 

SENATOR THOMAS. Did you make any report to Bronson? 

MR. RIGBY. Yes; I did. 


MR. RIGBY. I made reports for about 4 weeks. 

SENATOR THOMAS. Where did you send them ? 

MR. RIGBY. I sent them to Book Cadillac Hotel, Detroit, 

SENATOR THOMAS. Addressed to whom ? 

MR. RIGBY. R. L. Bronson. 

SENATOR THOMAS. What did you say in the reports? 

MR. RIGBY. I just told him . . . where there was chiseling, 
and he said my reports are not satisfactory, that . . . was not 
what he wanted. 

In the meantime, after this man told me I had been framed, 
he came to my house and I looked at him and I started in on 
him and I told him plenty. I said, "Mr. Bronson, if it is the 
last thing on earth I ever do I will get you, if you ever try to 
frame me and my family." He stood there, just looked, a big 
yellow rat, you know how they are, and he trembled, and he 
said, "Mr. Rigby, if you take that attitude," he said, "we'll 
forget the whole matter." I said, "W T ell, if you ever cross my 
path or cause my family any trouble," I said, "I will get you," 
and that man is present in this room today, and right there he 
is. (indicating). 

Tense moment. 

What would Bronson say? Would he admit the charge that he 
had posed as a government official? Not a chance. The agency 
crowd was admitting precious little the truth had to be forced 
out of them. Nevertheless, Bronson did confess to a great deal, 
enough to substantiate Rigby's story: 


SENATOR THOMAS. Mr. Bronson or Mr. Burnside which is 
your proper name? 

MR. BURNSIDE. Burnside, Senator. 

SENATOR THOMAS. Will you state your occupation . . . ? 
MR. BURNSIDE. I am assistant superintendent in the Detroit 
office of the Pinkerton Detective Agency. 

SENATOR THOMAS. How many names have you used in your 
occupation for covering yourself, Mr. Burnside? 

MR. BURNSIDE. Oh, I have used a great many names, Senator. 
I have been in the agency a great many years and necessarily 
our work requires using an alias a great many times. 

SENATOR THOMAS. Name some of them. 

MR. BURNSIDE. Well I have used the name of Bronson and I 
have used the name of Brunswick oh, a number of them. I 
generally use a name with the same initials as mine, because it 
makes it easy to remember. It is customary in detective prac- 

SENATOR THOMAS. Do you recognize Mr. Rigby? 


SENATOR THOMAS. You heard his testimony? 


SENATOR THOMAS. Are the things which he has said true? 

MR. BURNSIDE. No, sir. 

SENATOR THOMAS. In what particular are they not true? 

MR. BURNSIDE. Well, in a number of particulars. In the first 
place, the fact that he stated I was a Government officer is 

SENATOR THOMAS. What did you state you were? 

MR. BURNSIDE. I told him that I represented certain people 
who were interested 

SENATOR THOMAS, (interrupting) What people? 


MR. BURNSIDE. I did not tell him. I was not afraid to tell him 
that, because of the nature of the work, but I told him I repre- 
sented certain people who were interested in getting this in- 
formation that I spoke to him about. 

SENATOR THOMAS. Did you represent certain people? 

MR. BURNSIDE. I represented ourselves, yes; our agency. 

SENATOR THOMAS. Did you imply that those certain people 
were people that were interested in the enforcement of the 
N.R.A. law? 

MR. BURNSIDE. It has been a couple of years ago, Senator. 
As I recall it, I told him that we were interested in getting this 
information as to the violation of codes, chiseling, and any 
discrimination, violations in general of the practices laid down 
at that time. 

SENATOR THOMAS. Did you ever use the name of the Pinker- 
ton Detective Agency in his presence? 


SENATOR THOMAS. You tried to sneak up on him, as it were, 
did you ? 

MR. BURNSIDE. Well, "sneak" is not a very pleasant word. 

SENATOR THOMAS. Well, name your word for it. 

MR. BURNSIDE. I wanted to make sure that Mr. Rigby had 
the necessary aptitude, and so on, for our work before I told 
him definitely who we were. He appeared to be the type of man 
that we could use. 

SENATOR THOMAS. You assumed he was worth $20 a week 
anyway ? 


SENATOR THOMAS. Is that your judgment? 

MR. BURNSIDE. As a preliminary arrangement; yes. He was a 
young man who appeared to be highly intelligent, as I presume 
you will all grant me, he was a chap that was loyal to his family 
all the way through and appeared to be 100 per cent depend- 
able and the type of man that I could have used. 


Burnside, Pinkerton operative, was trying to make a spy out of 
Rigby. It was not his practice to hook just any worker. Not at all. 
Rigby was to be given the honor of spying on his fellow workers 
because he was just the right type of man for the job highly 
intelligent, loyal, dependable. No ordinary person would do. The 
Pinkertons made it a practice, before attempting to make a stool- 
pigeon out of an honest workman, to be sure that he was honest. 
At least that's their story. Mr. Rossetter, general manager, also 
testified that they were concerned about the character of their 
informants. "We make inquiries in the neighborhood in which 
they live to learn what their standing in the community is, whether 
they are considered honest, trustworthy, law-abiding people." 
Evidently only the best people were considered qualified for the 
job of selling out their fellow workers. 

Perhaps it was a coincidence that these best people with good 
character were also important in their union. This, the Pinkertons 
argued, was of no especial significance, a mere happen-so. Maybe. 
Charles Rigby was a prominent union man. And so was Charles 
Forwerck, also of Toledo, and also one of Burnside's prospects. 
On the stand Burnside told a similar story about his unsuccessful 
attempt to hook Forwerck, worker in the Libbey-Owens Ford Glass 
Company, and on the executive board of the union. This time, ac- 
cording to Forwerck's affidavit, Burnside posed as the representa- 
tive of some Detroit attorneys who in turn represented one of the 
largest motor corporations. Same palaver about not wanting any 
information that would hurt anybody in any way etc. etc.; same 
offer of money for the reports this time, however, only $60 a 
month (compared to Rigby's $20 a week). It appears that Burnside 
underrated this new prospect. There is little doubt that Forwerck 
could have made a first class spy; as a matter of fact he did a tip- 
top job on Burnside himself! Here is Forwerck's account from the 

He did not want to talk in front of my wife, and as a result I 
decided to find out what I could about him. After he left the 


house, I saw him walk over toward a car, several blocks away 
and I got into my car, turned the corner, and caught up with 
him as he was driving in his. I noted down the license number, 
an Ohio license, 9562-0. He was driving a 1934 Pontiac sedan, 
green-colored. He had previously told me that his name was 
Blackburn. I checked his license number with the Automobile 
Club in Toledo and discovered that the license had been issued 
to Ray L. Burnside, of 4591 Westway. I checked with the 
telephone book and found his number to be Lawndale 1565. 

Now this, you will grant, was not a bad piece of work for an 
amateur sleuth. But just imagine ... if only Forwerck had been 
possessed of that extra amount of character which the agency found 
a man needed to become a high-grade stool pigeon ! Then, under the 
expert guidance of Burnside and the other famous Pinks, what a 
career would have been his perhaps he would have become the 
greatest labor spy in American history ! How unfortunate that this 
worker who had come through the preliminary Pinkerton investi- 
gation of his special qualifications of honesty, loyalty and trust- 
worthiness, with flying colors, should at the crucial moment fail 
them all because of some silly notion in his mind that it was a 
dirty trick to spy on his fellow workers. 

Don't make the mistake of supposing that the Pinkertons lied 
when they said they made inquiries into the character of the men 
they were about to hook. They definitely do make an intensive 
investigation, as Mr. George A. Patterson, a steel worker at the 
Carnegie-Illinois Steel Company in Chicago found out to his 
amazement. Perhaps it was again just a coincidence that besides 
being a man of good character, Mr. Patterson was also a strong 
union man who was both an employees' representative in the com- 
pany union and president of the Independent Steel Organization 
which rose up in rebellion against the company union. Mr. Patter- 
son's story is the familiar one: invalid sister, indicating need of 
money; key man in the union; harmless sales talk about reports 
that would harm nobody. The only new feature is the surprising 


degree to which Mr. Patterson had been investigated. Mr. Pat- 
terson on the witness stand: 

On Lincoln's Birthday I returned from work and I found a 
heavy burly man in my home. I was quite upset about it. I 
wanted to know how this man got in my home. It so hap- 
pened that I have an invalid sister who is at home at all times, 
and she happened to allow this man in. I felt rather mad to 
find this stranger in my house. So I asked him what his 
business was. He said he had a proposition to make to me. I 
could not understand what he had to do with me. So he took 
me aside into my little kitchenette in the apartment and 
started a very fluent salesmanship talk. He said that he repre- 
sented the Fidelity Bond Company of the Empire State 
Building, New York, and he went on to state how interested 
they were in trying to increase the profits of the stockholders, 
and that he believed that there was trouble between em- 
ployees and managers, and that he thought I could help. 

I did not say very much but I listened to his story. He was 
very forceful, and after a while I asked him what I could do 
to help him in any way, he stated that I was a man of very 
good character, how they had investigated me and knew I 
had worked for almost 12 years with the Illinois Steel Com- 
pany the Carnegie-Illinois Steel; it is merged now and 
he knew I had been in the roll-shop department; he could tell 
all about me . . . He could tell me I was a good church 
member, that I was general superintendent of the Sunday 
school where I attended, and so on. The man evidently had 
investigated my character ... In fact, he knew almost as 
much about myself as I did. When he got through he said, 
"How would you like to do this for us? We will not ask you to 
do anything for us that will get you into trouble. Just go 
about your business in the usual way and make reports." By 
this time I thought this was a very peculiar situation, and I 
felt kind of peculiar. He sort of repulsed me, because I had 


never been approached in any way by anybody like him 

Mr. Patterson was evidently a newcomer to the trade union 
movement. Probably this was the first time he had held office in 
a union. To older, more experienced labor leaders, hooking is not 
new. They have known of it for many years and many of them have 
met with it, personally. They know how to handle it. They report 
immediately to the union. 

Mr. Carl Holderman, the district manager for the American Full- 
Fashioned Hosiery Workers, had been " contacted" several times 
so he knew what to expect when, in 1929, he was visited by a Mr. 
Ralph Robinson "representing the American Bankers Associa- 
tion." Mr. Holderman was a top ranking officer, not in a local un- 
ion, but in the national organization. Don't be surprised, then, to 
learn that as vice president of the national organization he was 
worth more than the ordinary hooked man. "He offered $150 a 
month [more than the others were offered, but not a patch on the 
rake-off of James C. Cronin, one-time President of the Central 
Labor Union of Philadelphia, who was paid $200 a week for his 
services as Operative 03] if I would be willing to supply them with 
information as to possible strike situations that might occur in the 
near future ... I immediately got in touch with the officers of 
our union, and we decided to see what else he had to offer." 

Mr. Phil E. Ziegler, the secretary-treasurer of the Brotherhood of 
Railway Clerks, was another labor leader who was on to the hook- 
ing activities of the spy agencies. When the night watchman of the 
building owned by the Railways Clerks informed him that he had 
been approached by a Mr. Bradley, Mr. Ziegler knew what to do. 
He had Jones play along with Bradley (real name, Samuel H. 
Brady, Pinkerton superintendent of the Cincinnati office) until 
they got the goods on him. Bradley-Brady pulled the familiar line 
with a new slant, "On our Executive Board we have fifty men (50), 
we have certain state Senators, Congressmen and many prominent 
men such as Charles Evans Hughes, Henry Ford, John D. Rocke- 


feller, Dr. Parkes S. Cadman, Father Ryan, Dr. Finney, the great 
surgeon . . ." The union officials were not convinced. 

Don't get the impression from these unsuccessful attempts at 
hooking, that the agencies always fail. They often succeed. Too 
often. Sometimes, as you can imagine, their success means the 
ruination of the hooked man's life. Often the men of character 
that they so carefully choose, to trick into becoming spies, go stead- 
ily to pieces until there is little character left in them. Occasionally 
a hooked man is able to break away from the agency, make peace 
with his conscience, and start life all over again. More often they 
remain trapped. One of the most pitiful instances of the terrible 
harm done by hooking is the case of the young man who never 
could get over the feeling of horror within himself that he had be- 
trayed his fellow workers. Even after making a clean breast of his 
spying activities, even after being absolved of all blame by the 
union heads, he was so overcome with remorse and shame that if by 
chance he would pass a vegetable store window in which the sign 
"Northern Spy" apples was displayed, he would break out into 
a cold sweat and his heart would pound like a trip-hammer. 

Hooking is the method most commonly employed when the 
agency finds it necessary to use as its informant one of the workers 
already in the factory. But sometimes the plant setup is such that 
an outside operative can be brought in without causing undue 
suspicion. The agencies usually recruit these outside operatives by 
the "blind ad" method: 

SENATOR LA FOLLETTE. How do you get operatives when 
you need new ones ? 

MR. ROSS. Why we are constantly recruiting them, under 
ordinary circumstances, by advertising and through blind ads, 
and then we interview them and we select them through the 
process of elimination. We have them write reports, giving 
them subjects to write on, give them a talk and just let them 
come back and see how much of it they get. A mental test, I 
should say it was. 


Unemployed workers hunting for jobs turn to the Help Wanted 
section of the newspapers. You know what they find there: 


MACHINIST: General all-round machinist; preferably 
experienced with big tools and heavy work; hourly rate 
and bonus. Give shop experience, age and phone. Box 524. 

PLANER HANDS: Heavy work, expansion program; 
highest hourly rate to producers ; give details of experience, 
references and phone. Box 13772. Plain Dealer. 
RUBBER WORKERS: On sundries and specialties; can 
make up to 80^f per hour, depending on production. Explain 
class of work, machines experienced on, age and phone 
number. Box 7372. Plain Dealer. 

STRANDERS: And roughers for merchant mill on round, 
hex and square stock; hourly rate plus tonnage. In reply 
give description, full history and phone. Address Box 6418. 

These are real ads taken from The Cleveland Press and Cleveland 
Plain Dealer. They look like any other ads. But they are not. For 
the unemployed worker who hopefully writes to any one of these 
Box Numbers, they may be dynamite. These four harmless looking 
offers of jobs were "blind ads" inserted by the Corporations Auxil- 
iary Co. They were the bait to lure workers hungry for jobs into 
the agency trap. 

Any applicant who writes an intelligent reply to a blind ad is 
notified to call for an interview at a stated address. The name on 
the door of the office may be John Smith Company or Green Engi- 
neering Corporation or any name except the name of the detec- 
tive agency. The job-seeker is then given a "mental test," i.e., he 
may be asked to write a detailed report then and there of what he 
did that day, including all the people he talked to and what they 
said; or he may be given an ordinary literacy test, etc. If the inter- 
viewer is satisfied that he is capable, he is told that a job will be 
found for him at such and such a factory; he will receive his 
wages for his work at the factory, and an additional sum for the 
daily reports he is to write. The applicant next applies at the 


factory, is given the job at once, and his career as stool-pigeon is 

The whole procedure from beginning to end, from blind ad to 
union-smashing is beautifully illustrated in two affidavits from the 
record. The first is the story of John Mohacsi, a machinist who 
answered a blind ad and was molded into a spy; the second is a 
union official's account of Mohacsi's activities as a spy. 

John Mohacsi, being duly sworn deposes and says: 

That I reside at 30-26 49th Street, Astoria, Long Island, 
New York. That the following statements are made of my own 
free will and accord. 

I have been working as a machinist since 1919. I started as 
an apprentice in the Trenton shop of the Pennsylvania Rail- 
road and have, since that time, worked in many of the com- 
panies throughout the metropolitan area as an experienced 
machinist and tool and die maker. 

In and about May 1935, while I was employed by the 
Atlantic Base and Iron Works of Brooklyn, New York, I an- 
swered an advertisement in the New York American, a paper 
published daily in the city of New York, calling for an ex- 
perienced machinist. I received a letter on the letterhead of 
the Atlantic Production Company, 1775 Broadway, New 
York City, to come in for an interview. I was interviewed by a 
Mr. J. C. Carter, of that office who stated that his was a firm 
of consulting engineers and that if they placed me on a job I 
would have to report as to the conditions existing in the plant. 
I was also given a literacy test. 

I heard no more from this Atlantic Production Company 
until November 1935, when I again received a letter from Car- 
ter on the letterhead of that company. I was then employed 
by the Fairchild Aerial Camera Corporation of Woodside, 
Long Island, N. Y. I was then again interviewed by J. C. 
Carter and told that they had a job for me. The job was with 
the Worthington Pump Company at Harrison, New Jersey. 


I was to be employed as a tool maker at 78^ per hour. In addi- 
tion to this I was to get $50.00 per month for my reports to 
the Atlantic Production Company from Carter. 

I was given instructions by Carter that I was to make re- 
ports every day concerning the type of men I was working 
with; whether any of the men were constantly complaining 
about conditions; to get to know what my fellow workers 
were thinking about and their attitude toward their pay and 
working conditions. I was also told that when I incorporated 
any of the complaints of the men, I was to make sure to state 
the names of the men. I was told to report what "I see" and 
what "I hear". I was told, in January 1936, by L. H. (Pat 
Stewart) to join the union and to make myself a leader among 
the men so as to influence their attitude toward their em- 
ployer. I was also asked to report what fraternal lodge or union 
most of the men belonged to; how it affects their work and my 
specific instructions stated that if I thought my acquaintance 
might be widened by joining the lodge or union, to contact 
that Atlantic Production Company about the matter. I was 
also instructed that if I was able to be elected from my de- 
partment as a delegate to the lodge, I should do so in order 
that I may become a real leader among the men. 

I was given a letter to Mr. Bennett, general manager of 
the Worthington Pump Company and was in turn turned 
over to the employment manager. After three weeks of mak- 
ing reports, I was turned over to Pat Stewart. Up until Jan- 
uary 20, 1937, when I made my last report, my contact was 
with Pat Stewart. 

On or about January 4th, 1936, Pat Stewart sent me a letter 
to come in to see him. In the ordinary course of my work, I 
would make personal visits bi-monthly to the office to report. 
When I came to the office, I noticed that the name Atlantic 
Production Company was no longer on the door, and there ap- 
peared the name International Auxiliary Corporation. At this 
time, Pat Stewart told me that he wanted me to join the union 


which was organizing at the plant. He handed me the applica- 
tion card of the Tool, Die, and Metal Workers* Union of which 
Mr. Rubicz was the organizer. This union later became a local 
of the I.A.M. affiliated with the A. F. of L., local #1560. 
He told me that I was to join up with the union and to make 
detailed reports of what went on at the meetings. 

Thereafter I wrote out an application for membership to the 
union and became a member of same. Twice a month I would 
send in detailed reports on the meetings of the union ... In 
accordance with my instructions from Pat Stewart, I reported 
on any radicals found in the plant or in the union. In accord- 
ance with these instructions, I did report the names and identi- 
ties of any such radicals . . . 


That Mohacsi carried out his instructions to report on "radicals" 
is proven by the following affidavit. It proves also that he had been 
taught the customary agency definition of a radical a man who 
belongs to a union. 

Steve Rubicz, being duly sworn deposes and says: 
That I am business representative of Unity Lodge #1560 of 
the International Association of Machinists affiliated with the 
A. F. of L., 315 Plane Street, Newark, New Jersey. That I 
was business agent of the Machinists, Tool and Foundry 
Workers local 401 which later became the present Unity Lodge 
#1560 of the International Association of Machinists. 

John Mohacsi, in January 1936, wrote in an application for 
membership in what was then the Machinists, Tool and 
Foundry Workers local 401. He stated that he was employed 
in the Worthington Pump Company. At that time we had 
about 1 8 members in the tool room of the Worthington Pump 
Company. A few weeks after Mohacsi became a member, these 
men came to see me and told me that they were dropping 
their union membership. They stated that they had been in- 
formed by the company that it knew that they were members 


of the union and that they know all about the activities of the 
union. They were warned by the company that they had better 
drop their membership if they wanted to retain their positions. 
I am not stating the names of the men because of the fact that 
they are still employed by the company and it might jeopardize 
their positions if their names were stated. Practically all of the 
1 8 resigned from the union. It was common knowledge among 
the employees of the Worthington Pump Company that the 
company was in a position of knowing whether or not they did 
join the union. 

In or about May 1936 this local amalgamated with the 
International Association of Machinists and became local 
#1560. In and about September 1936, two members of our 
local secured positions at the Worthington Pump Company. 
Within two weeks they were both discharged without any 
reason having been given. Their names of course were known 
to Mohacsi and he, no doubt, reported this to the company. 

Many of the employees of the Worthington Pump Company 
who have been with the company many years, have expressed 
a desire to join the union. But they have stated to me that they 
could not join because of the spy system of the company which 
would jeopardize their positions. For this reason the union has 
been unable to organize or secure any members in the said 
company. Mohacsi has been exposed as a spy in the employ of 
the International Auxiliary Corporation. 


Unemployed workers scan the Help Wanted section of the news- 
papers and apply for jobs for which they are qualified. They need the 
jobs. They are out of work and must have money. The jobs are 
offered them with the seemingly harmless string attached, that 
they must write secret reports. Before long they are lured into the 
agency trap. They have become stool-pigeons. 

Factory workers whose wages are not enough to meet their needs 
are offered extra money for writing seemingly innocent reports. 



Before long they are lured into the agency trap. They are hooked. 
They have become stool-pigeons. 

In this manner thousands of innocent men have been ensnared 
into becoming spies. In similar fashion, thousands of innocent girls 
have been trapped into becoming prostitutes. Is there any material 
difference between the agency operative hooking an innocent 
worker, and the pimp hooking an innocent girl? Even the money 
returns to the principals are comparable the incomes of the 
heads of the large spy agency chains would not be sneered at by 
any head of a chain of brothels. The two "industries" are alike in 
technique, profits, morals and ethics. 

V. The Rats' Code 

JOHN ANDREWS was paid $40 a month for spying on his pal 
Dick Frankensteen. That's $480 a year. Rigby was offered $20 a 
week. That's $1040 a year. Roszel, Mohacsi, Shults and the others 
probably fall somewhere in between. Now $480 to $1000 is not a 
great deal of money. But the spying business is like every other 
business in capitalist society low wages to the men who do the 
actual work, and huge returns to the directors and owners. While 
Andrews was receiving $480 for his year's work, one of his bosses, 
Dan Ross, the general manager, was receiving over 100 times as 
much $50,000. And that wasn't all for Ross. The pattern among 
our big industrialists is to throw in a reward to themselves for 
the fine work their employees have done. Corporations Auxiliary 
was no exception. Besides his $50,000 a year salary, Ross was 
given a bonus of 10% of the gross receipts. Not a bad arrangement 
for Mr. Ross as you can see from a glance at the gross annual in- 
come of Corporations Auxiliary: 

1933 $284,847. 78 

1934 $489,131.11 

1935 $518,215.26 

Take 10% of each of those figures and add it to $50,000 and you 
have Mr. Ross's annual income. Notice that this bonus scheme 
stimulated Mr. Ross to get more work out of his employees every 
year, so that by 1935 he had really made good: his total salary for 
that year was higher than that of the President of the United 

Nor did the general manager get all the pickings. There was still 
enough money left in the Corporations Auxiliary safe to take care 
of the other big shots in the firm. Mr. James H. Smith, "harmoniz- 


ing-conditions" Smith, the president of Corporations Auxiliary and 
its subsidiaries, was not left out in the cold. According to his testi- 
mony he was supposed to get $15,000 a year from each of five 
operating companies. That would give him $75,000 annually, but 
for some reason which he didn't explain, he drew down only $48,000 
in 1935. But before you begin to worry about whether Smith could 
live on that paltry sum, remember that was just his salary his 
bonus and dividends are not counted in. 

Mr. Weber, the secretary and treasurer of the outfit, must have 
enjoyed himself as he counted the money due him in 1935 $30,- 
ooo. That came to a little less than $600 a week. It wasn't even a 
third of what he had to count out for Ross; nevertheless it was 
enough to scrape along on, and since the business was growing Mr. 
Weber could hope for a raise. 

The Pinkertons did a bigger business. Their gross annual income 
for 1933 to 1935 was as follows: 

1933 $1,466,530.54 

1934 $2,187,240.52 

1935 $2,318,039.18 

Their income from their industrial service alone was almost twice 
as much as the gross annual income of Corporations Auxiliary. In 
1934 it was approximately $900,000; in 1935, approximately $i,- 
000,000; and for the first 7 months of 1936 it was approximately 

But in spite of their huge volume of business, Pinkerton's salary 
situation was something frightful. Mr. Rossetter, who told a touch- 
ing story of how he had worked himself down from office boy to 
chief clerk, to operative, to assistant superintendent, and finally to 
general manager, was grossly underpaid. In 1935 his salary was a 
measly $10,000 and his bonus a mere $2,000. Only $12,000 a year! 
Compare the salaries of Pinkerton's Rossetter to Corporations' 
Ross and the injustice becomes apparent at once. It's almost as 
though Rossetter were still an office boy. 

And the worst of it was that Rossetter couldn't complain. It 
would have been different if Mr. Robert A. Pinkerton, the presi- 


dent of the agency, were drawing a huge salary. But he wasn't. Mr. 
Rossetter knew that what little work President Pinkerton did, he 
did for nothing. Mr. Pinkerton received no salary at all. It was 
true, of course, that the agency, in 1935, declared a dividend of 
$185,000. It was true, too, that Mr. Pinkerton's slice of that divi- 
dend melon was $129,500. But since Mr. Pinkerton owned 70% of 
the stock in the agency, the $129,500 was justly due him. Rossetter 
was experienced enough in business to know that it is customary 
and proper for the lion's share to go to the men who own, not to the 
men who work. 

Now if you have been squirming as you read about these salaries 
because your own annual income looks tiny by comparison, re- 
member that America is still the land of opportunity. You too, 
have a chance to crash into the Big Money. The way is clear 
but it means hard work. Are you willing to apply yourself? Are you 
willing to spend fifteen minutes a day in earnest study ? If you are, 
then the Road to Success lies before you. An unusual career is open 
to ambitious young men and women the Chance of a Lifetime 
the opportunity to become a Stool-Pigeon. The National Manu- 
facturers Syndicate, an affiliate of the Sherman Service, tells you 
how. All you need do is enroll for their correspondence course, then 
study, study, study. Here are a few sample instructions from their 
24-page booklet entitled "Correspondence Course of Training for 
an Industrial Operative": 


There is nothing about your relationship with your fellow 
workers which can be considered underhand or deceitful . . . 
Our work is most honorable, humanitarian, and very impor- 
tant, and must be recognized as such. 


It is very plain that in order for us to be successful we must 
conduct our work in an invisible manner. The ordinary worker, 
in his ignorance, is apt to misunderstand our motives if he 


knows of our presence and identity in the plant. You will 
really be engaged in human engineering but in order that 
you may succeed, no one is to know of your association with 
us or the character of work which you are doing. 


The rules and regulations of our organization exclude even 
one's close friends and families from any knowledge as to the 
details of any assignments a representative may receive . . . 

It will be your duty to make up and mail in a detailed report 
for each day as to when you begin work, when you quit, what 
you did, what you saw, and what you heard in connection with 
the particular assignment in which you were engaged . . . 

You will receive frequent instructions from us which you 
are to mail back to us together with envelope in which it was 
sent as soon as you have read them carefully . . . 

Live strictly in accordance with your apparent earnings in 
the plant. Do not spend money freely. Such action would at- 
tract attention at once and would ruin your chance of making 
your work successful. 

When assigned to inside work in mill or factory, get a room- 
ing place the same as any other worker would do. Do not share 
it with others. The presence of an outsider would interfere 
with the writing of your confidential reports and making up of 
expense accounts. 

Should it ever become necessary for you to explain to the 
police your presence in any town, never under any circum- 
stances admit to a police officer your connection with this or- 
ganization. If the story you tell them does not satisfy them, 
ask to see the police chief and to him only communicate your 
identity by name and number and request him to get in touch 
with us. When he communicates with us you will be dismissed 
at once. 

In writing your reports see that you are not observed by 
fellow workers, the landlady, or others. When leaving the room 

Senate Probers Examine Striker "Persuader" 

(Underwood and Underwood] 

"Six little Pinks sitting in a row": i. Shoemack; 2. Dudley; 
3. Pinkerton; 4. Rossetter; 5. Pugmire; 6. Clark (Acme) 



Raymond J. Burns and W. Sherman Burns, heads of the Burns 
agency (Pictures, Inc.] 

John L. Lewis, interested observer at the hearings 



be sure that you leave no memoranda lying around. Tear them 
up into minute parts before throwing into waste basket, or 
Jbetter still, use the toilet hopper or burn . . . 


Both your representative number and your case series num- 
ber must appear on every report and expense slip. Never use 
your name, or this organization, or the client's name. When 
necessary refer to us as "The Service" and to the client as 
"The Client" . . . 

In mixing with your fellow-workers never allow yourself to 
become intoxicated and never under any circumstances per- 
mit yourself to mix up with women. Do not spend excessively. 
Make no display of a roll of bills and be sure when you send in 
your expense account that you make mention of money spent 
for treats of fellow- workers . . . 

In giving conversations always give the name of the man or 
his number, then tell what you said to him and what he says 
to you. In all these conversations try to talk about the work so 
as to find out how each man feels about the foreman and super- 
intendent or anyone else in authority. You want to find out 
when the union meets, if there is a union. Then maybe we 
will have you arrange to attend their meetings so that we can 
see just what is going on, and be able to report whether any of 
the men where you are at work are members of the union. Be 
sure to report whether any agitation is going on in town any- 

Remember we are unalterably opposed to all cliques, radi- 
calists, and disturbing elements who try to create discontent- 
ment, suspicion, and unfriendliness on the part of the workers 
toward the employer. The minds of those who are dissatisfied 
and disgruntled must be changed. As our representative, you 
must find out first of all who are the dissatisfied ones; then 
cultivate their friendship and win their confidence. You will 
then be in a position to help us eliminate discontentment. 


Be forewarned before you enroll for this course that more than 
diligent habits of study are required to win success in the spy busi- 
ness. You must be daring. You must be prepared to throw over- 
board your moral scruples. You must be hard. You must learn to 
lie easily and often. You must convince yourself that practices 
which most people regard as definitely wrong, are definitely right. 
You must be slippery, shrewd, sharp, sneaky. You must not hesi- 
tate to beat the law where you can and break the law where you 
must. Success came to Corporations Auxiliary, the Pinkerton 
Agency, the Burns Agency, the Sherman Service, Railway Audit & 
Inspection and the other top-notchers, only because they had 
learned these things. 

Let us look at the record. 

In 1933, the Chrysler Corporation owed to Corporations Auxiliary 
$61,627.48. The agency submitted its bill and received payment. 

In 1934, the Chrysler Corporation owed to Corporations Auxili- 
ary $76,411.81. The agency submitted its bill and received pay- 

In 1935, the Chrysler Corporation owed to Corporations Auxili- 
ary $72,611.89. But now a curious thing happened. The agency did 
not submit its bill and receive payment. Instead, it submitted four 

Only the first, for $19,946.55, was from Corporations Auxiliary. 

The second, for $19,447.09, was from Smith & Weber. 

The third, for $16,910.58, was from the Equitable Auditing 
& Publishing Co. 

And the fourth, for $16,307.67, was from the International 
Auxiliary Co. 

The total is $72,61 1.89, which is what the Chrysler Corpo- 
ration owed to Corporations Auxiliary for 1935. Then why all the 
monkey business? Why did the agency in 1935 have to pull out of a 
hat a Smith and Weber letterhead, and an Equitable Audi ting letter- 
head? What trick was being performed in 1935 that wasn't staged 
in '33 or '34? 

Watch carefully. 


SENATOR LA FOLLETTE. Mr. Smith, are you familiar with the 
Securities Act . . . ? 

MR. SMITH. I do not think so. Senator. 

SENATOR LA FOLLETTE. Are you familiar with the regulations 
under that act requiring a corporation to report to the Securi- 
ties and Exchange Commission all payments for services in 
excess of $20,000 made by it to any firm, person, or corpora- 

MR. SMITH. It seems to me I have read something of that sort. 

SENATOR LA FOLLETTE. Well, now, have you any reason 
which you can give to the committee as to why these bills were 
split up in 1935 and not split up in 1934? 

MR. SMITH. None that I can give you, sir; no, sir. 

SENATOR LA FOLLETTE. Do you think that the Securities and 
Exchange Act had anything to do with it ? 

MR. SMITH. I might imagine some such thing, but I have no 
knowledge of it. 

Now we begin to understand. Smith hasn't been very helpful (he 
gets a tremendous salary for knowing almost nothing, doesn't he?), 
but Senator La Follette's suspicions give us a clue. The Chrysler 
Corporation wanted to evade the law that required it to report to 
the S.E.C. all payments it made above $20,000; the Chrysler Corpo- 
ration was too embarrassed or afraid to make known the fact that 
it had paid $72,611.89 to a spy agency. It asked Corporations 
Auxiliary to help it beat the law, and the agency obliged by splitting 
its bill into 4 parts no one of which was above $20 poo. Under this ar- 
rangement Chrysler could pay what it owed without reporting it 
thus beating the law. 

Shady business, of course. We might be prepared to believe that 
the dick agency would be partner to such a deal, but what about 
the Chrysler Corporation? Would that great firm stoop so low? 
Perhaps it's all a mistake, perhaps our suspicions are wrong. 

Alas, no. The mighty Chrysler Corporation and Corporations 
Auxiliary did conspire together to beat the law. It was, in fact, 


Chrysler's idea and the agency did not hesitate to do its crooked 
part. When Dan Ross was asked why Corporations Auxiliary's 
method of billing was changed in 1935, he gave the whole show 

MR. ROSS. That was changed at the request of one of the offi- 
cers I do not know whom on account of the Securities 

SENATOR LA FOLLETTE. It was changed at the request of one 
of the officers of the Chrysler Corporation ? 

MR. ROSS. Yes, sir. 

SENATOR LA FOLLETTE. It originated with them, you are 

MR. ROSS. Oh, absolutely. 

SENATOR LA FOLLETTE. Now, obviously, as far as the Corpo- 
rations Auxiliary Co. was concerned, you were willing to co- 
operate, after you had received this request from the Chrysler 
Corporation, in breaking down your bills for identical service, 
so they would not have to report ? 

MR. ROSS. I so informed Mr. Weber, and . . . the sending 
of those bills was in accordance with that procedure. 

SENATOR LA FOLLETTE. So as to enable the Chrysler Corpora- 
tion, according to your testimony, to avoid the necessity of re- 
porting, as required by law ? 

MR. ROSS. I suppose so. 

What Corporations Auxiliary could do for Chrysler, the Pinker- 
tons could do for General Motors. Were General Motors officials 
worried lest detailed Pinkerton bills passing through the accounting 
department might reveal the fact that spies were in the plant? 
Then the Pinks could relieve them of their fears. Two bills could be 
submitted: one, long and detailed with all the dope in it for the 
corporation officials, who would destroy it after reading; the other, 
short and meaningless, with no tell-tale information on it for the 
accountants and the files. What troublesome information, for ex- 


ample, could the accountants glean from the following harmless- 
looking bill? 

G. O. 9 19332 
April 30, 1935 
General Motors Corporation, Dr. 

In Account with J. S. Smith, 154 Nassau Street, New York, 
N. Y. : 

For Professional Services $2,780. 68 

Travelling Expenses 865 . 54 

Telephone and Telegraph 946 . 42 

Publications 157.02 

Approved for Payment. Return to Audit Dept. For Final 


Approved for Final Audit R. A. M. 
PAID OCT. 4, 1935; Ck. No. C 30298 
265 R O.K. J. Eaton 27a 

Could you tell from this bill that the $4,749.66 went in reality to 
the Pinkerton Agency for its industrial service ? Not evident in any 
way, is it? But wasn't it just as meaningless to General Motors 
officials as it might be to the accountants? (Or to snooping govern- 
ment officials?) Oh, no. They understood it because, you remember, 
this bill was accompanied by a detailed one which explained Mr. 
Smith's "professional services," etc. 

Do you find it utterly fantastic that General Motors, one of the 
greatest corporations in the world, should have asked the Pinks to 
bill them in this sneaking fashion ? And that the Pinkerton Agency 
(established 1850), which prides itself that it is superior to other 
agencies, should have complied with General Motors' request? 
Then look at the sworn testimony: 

MR. HALE, [former labor-relations director] ... I worked it 
out with Mr. McMullen that we didn't think it desirable to 


have a lot of this detailed information going through our ac- 
counting department files. 


MR. HALE. For the reason it was the type of information we 
just didn't think was good business to have scattered around 
through the department. 


MR. HALE. Well (Laughter). 

SENATOR LA FOLLETTE. As a matter of fact, Mr. Hale, you 
did not want it to get back to the employees that you were 
getting this kind of information, if you will pardon me for 
asking a leading question to save time. 

MR. HALE. I don't know that that was entirely the reason, 
sir. A good many things are not understood, Senator, by 
people who do not understand the whole picture. 

SENATOR LA FOLLETTE. I will grant you that. But, for ex- 
ample, Mr. Hale, it is not an accounting practice of this effi- 
cient corporation, is it, to digest or think up strange headings 
for bills for equipment, and parts and materials, is it? The 
Steel Corporation does not bill you for wooden ware, does it? 

MR. HALE. No, sir. . . . 

SENATOR LA FOLLETTE. . . . You put into effect, or had an 
arrangement with Pinkerton's whereby those detailed bills, 
which you thought inadvisable to have going through the 
accounting department, came through in the form of a break- 
down into four or five different heads ? 

MR. HALE. Yes, sir. 

SENATOR LA FOLLETTE. And then later on you began to get 
bills from clerks in Pinkerton's, like J. S. Smith, for profes- 
sional services during i month, $2,850. Now, I am asking you 
if those were typical of the bills you received ? ... 

MR. HALE. We received two bills. We received a detailed 
bill . . . and a summary bill for purposes of going through 


our accounting department. On the basis of the detailed bill it 
gave me a chance to audit the over-all bill. 

SENATOR LA FOLLETTE. What did you do with the detailed bill ? 

MR. HALE. Destroyed it, sir. 

SENATOR LA FOLLETTE. The bills that were left in the records 
of the General Motors' offices were really not reflectory of the 
kind of service you were obtaining, were they ? 

MR. HALE. I would say they were; yes, sir; very definitely. 

SENATOR LA FOLLETTE. Would you say a bill, from J. S. 
Smith, who Mr. Rossetter testified was a clerk in his office, for 
professional services, amounting to, if my recollection serves 
me correctly, in I month to $2,850, and traveling and tele- 
phone expenses around $900, revealed the type of service that 
Pinkerton was rendering to your organization? 

MR. HALE. Those bills were subsequent to my time, and I 
will ask Mr. Anderson to answer that question. 

SENATOR LA FOLLETTE. What would you say, Mr. Anderson? 


Of course it's unfair to put more than a little of the blame on the 
agencies. In both these cases the shady idea came originally from 
the clients, Chrysler and General Motors. All that the agencies did 
was to fall in with the scheme without any quibbling. They obeyed 
their master's voice. The companies that paid the bills were calling 
the tune. 

They called a good many tunes some of them definitely off key 
to anybody not made tone-deaf by contact with dick agencies. 
For example, both Chrysler and General Motors ordered their spy 
service extended to plants other than their own! Chrysler bought 
supplies and equipment from firms not subsidiary to the Chrysler 
Corporation. Mr. Allen P. Hascall, who was in charge of the pur- 
chase of materials, testified that he felt it was his job to keep a 
steady flow of materials coming into the plant, so he asked Corpora- 
tions Auxiliary to make "surveys" of the vendor plants. Corpora- 


tions Auxiliary obliged. It made surveys, too, of plants not yet 
selling to Chrysler. It even made surveys of vendors to competitors 
of Chrysler! And in no case were the officials of these plants advised 
that Chrysler was spying on them through Corporations Auxiliary. 
Pretty business! 

SENATOR LA FOLLETTE. Is it your policy to ask for reports on 
all vendors who supply an appreciable amount of materials 
necessary for the complete operation of the Chrysler plants? 

MR. HASCALL. YeS, sir. 

SENATOR LA FOLLETTE. Is it your practice to secure such a 
report before you purchase any material from a new source of 
supply ? 

MR. HASCALL. I frequently do that. 

SENATOR LA FOLLETTE. When you have a vendors' survey 
made ... do you advise any of the officers of that company 
that you are having such a survey made ? 


SENATOR LA FOLLETTE. Is it not often true that your competi- 
tors use some of these vendors ? 
MR. HASCALL. I would say so. 

Does Chrysler's practice of injecting their paid spies into the 
other fellow's plants seem just a trifle er unusual ? Well, it 
didn't seem so to General Motors their only complaint was that 
their own spies, the Pinks, didn't get them enough information on 
their vendors' business: 

SENATOR LA FOLLETTE. Now, Mr. Hale; were you interested 
in information concerning labor conditions and organizational 
activities in the equipment and suppliers of General Motors? 

MR. HALE. I was interested if there was threatened trouble. 

SENATOR LA FOLLETTE. Did Pinkertons furnish you such 
information ? 


MR. HALE. Not as completely as I wished they had. 
SENATOR LA FOLLETTE. They did furnish you some? 
MR. HALE. Yes, sir. 

If you think all this spying in their own plants and in the plants 
of their vendors is becoming a hopeless tangle, here's a word of 
warning "You ain't seen no thin' yet." General Motors put the 
Pinkertons on still another tack they had to spy on the Corpora- 
tions Auxiliary! T^he spies for General Motors were asked to spy on 
the spies for Chrysler. 

Senator La Follette hands a Pinkerton ledger sheet to Edward S. 
Clark, manager of the Pinkerton Cleveland office: 

SENATOR LA FOLLETTE. Mr. Clark, do you know what C.A.C. 
stands for? There are n entries for C.A.C. What is that? 

MR. CLARK. I think that is the Corporations Auxiliary Co. 

SENATOR LA FOLLETTE. What were you doing on that job? 

MR. CLARK. Well, we were trying to find out whether or 
not information they were securing was being passed to a 

SENATOR LA FOLLETTE. Now, why did you concentrate on 
Corporations Auxiliary? 

MR. CLARK. Well, it was my understanding that those folks 
were doing a good deal of work for this particular competitor. 


MR. CLARK. Chrysler . . . 

How the spy system grows! What sorry practices our business 
leaders feel themselves forced to indulge in, because of the pressure 
of competitive capitalist industry. 

But we've not reached the end even yet. Not only do the agencies 
spy on workers and vendors, and on the operatives of other agencies, 
but they even spy on their own spies ! They can't even trust them- 
selves. Robert W. Coates, a Burns operative, admitted this. He 
was being questioned about a report he had written about a union 


meeting of bakery workers which he had attended. (See Appendix 

SENATOR LA FOLLETTE. As a matter of fact did you not take 
part in this meeting and make these suggestions for the pur- 
pose of establishing confidence in the minds of the other people 
there concerning yourself and your bona fide connection as a 
worker for a bakery? 

MR. COATES. Well, it is certain I didn't go in there and tell 
them I was a Burns detective. It is quite obvious from my 
reports on it. 

SENATOR LA FOLLETTE. You even went so far as to express 
your fear there might be some stool-pigeons present. 

MR. COATES. Why, I was satisfied there was. 

SENATOR LA FOLLETTE. How could you tell? (Laughter) 

MR. COATES. Senator, in my experience for the past twenty 
some years I have found out there is stools in every union 

SENATOR LA FOLLETTE. You did not think there were any 
other Burns stools there, did you? 

MR. COATES. I didn't know. There might have been some- 
body there checking on me for all I knew. (Laughter) 

SENATOR THOMAS. Is that a common practice? 

MR. COATES. For what? 

SENATOR THOMAS. For Burns men to check on Burns men. 

MR. COATES. Well, I have known them to. 

The Burns agency had the "checking" habit. For a considera- 
tion, they would check anything and everybody. No, that's not 
quite true Mr. W. Sherman Burns, secretary-treasurer of the 
William J. Burns International Detective Agency, testified that 
they "never shadowed any grand juries at any time." Trial juries 
well, they were different, but grand juries, never. 

SENATOR LA FOLLETTE. Do you recall the activities of your 
agency in connection with the prosecution of Harry Sinclair 


for refusing to answer questions before a Senate committee, 
engaged in investigating the Teapot Dome Oil scandals? 


SENATOR LA FOLLETTE. Did not operatives of your agency 
shadow members of a Federal grand jury which indicted 

MR. w. SHERMAN BURNS. Not in that case, or in no case. 
We never shadowed any grand juries at any time. 

SENATOR LA FOLLETTE. Did you shadow the trial jurors in 
that case? 

MR. w. SHERMAN BURNS. In the Sinclair case; yes. 

SENATOR LA FOLLETTE. Pardon me for getting the question 
first about the grand jury. Is there any difference between 
shadowing grand jury members and trial jury members in 
your judgment? 


SENATOR LA FOLLETTE. In the field of morals or ethics? 

MR. w. SHERMAN BURNS. Yes; I think so. 

SENATOR LA FOLLETTE. Do you recall what the Supreme 
Court of the United States had to say about private detectives 
apropos of your activities in the Sinclair case? 

MR. w. SHERMAN BURNS. No; I don't recall. 

SENATOR LA FOLLETTE. Just to refresh your recollection I 
will read in part from the decision of the Supreme Court: 

"The most exemplary resent having their footsteps dogged 
by private detectives. All know that men who accept such 
employment commonly lack fine scruples, and only wilfully 
misrepresent innocent conduct and manufacture charges." 

Does that refresh your recollection? 


It might be argued that the Supreme Court was a little too hard 
on the dicks when it said they "commonly lack fine scruples." 
Actually the scruples of the Burns outfit were so very, very fine that 


they could detect a difference in ethics between shadowing a grand 
jury and a trial jury. 

One wonders what the Supreme Court would think of the latest 
wrinkle in shadowing. In Toledo, in 1935, there was a strike at the 
Chevrolet plant. Mr. Edward McGrady, the Assistant Secretary of 
Labor, was sent in by the Government to act as conciliator, ^he 
Pinkertons, acting for General Motors, shadowed Mr. McGrady, a 
government officer. It no longer surprises us to learn that spies trail 
John L. Lewis, Adolph Germer, Richard Frankensteen, and other 
leaders of labor; but this shadowing of a government officer while he 
is in the middle of his negotiations toward settlement of a strike, is a 
new angle. Yet the record leaves no room for doubt: 

MR. MARTIN. [Pinkerton operative] . . . Mr. McGrady was 
pointed out to me by Mr. Brunswick. [Bronson, Burnside, now 

SENATOR THOMAS. Mr. Brunswick identified Mr. McGrady? 
MR. MARTIN. Mr. Brunswick identified Mr. McGrady. 
SENATOR THOMAS. And told you to follow McGrady? 
MR. MARTIN. And told me to follow McGrady. 
SENATOR THOMAS. For what purpose? 

MR. MARTIN. When he came out to follow him, see where he 
went and whom he talked to. 

SENATOR THOMAS. Then you did what? 

MR. MARTIN. Then I was told by Mr. Brunswick to go to a 
room downstairs, that Mr. Brunswick had made arrangements 
with the manager of the hotel. This room was right next door 
to the one supposedly occupied by Mr. McGrady. 

SENATOR THOMAS. That is, Mr. Brunswick knew the hotel in 
which McGrady lived ? 


SENATOR THOMAS. And he made arrangements for you to 
have the room next door? 

MR. MARTIN. He made arrangements for us to have the 
room next door. 


SENATOR THOMAS. So that you could shadow him? 
MR. MARTIN. So we could sit in there and try to hear what 
they were talking about. 

SENATOR THOMAS. In the next room? 

MR. MARTIN. YeS, Sir. 

SENATOR THOMAS. What hotel was that? 

MR. MARTIN. The Secor Hotel. 

SENATOR THOMAS. Did you go to the room? 

MR. MARTIN. We went to the room but did not hear any- 

SENATOR THOMAS. Well, you mean Mr. McGrady did not 
come into the room ? 

MR. MARTIN. I could not tell who was in the room. There was 
someone in there. Everything was mumbled; I could not even 
say Mr. McGrady was in there. He was supposed to be in 
there with these other men. 

SENATOR THOMAS. They talked in low voices? 

MR. MARTIN. Well, they talked loud enough, but you could 
not understand anything. 

SENATOR THOMAS. They talked in a foreign language? 

MR. MARTIN. No, sir. 

SENATOR THOMAS. How did you try to understand it? Did 
you get near the transom ? 

MR. MARTIN. All we had to do was to get up near the wall. 
That is all I could do. 

SENATOR THOMAS. Did you try that again? 

MR. MARTIN. Well, on two or three occasions like that, 
always at night. 

SENATOR THOMAS. Always at night? 

MR. MARTIN. Always at night. 

SENATOR THOMAS. When Mr. McGrady came home? 


Martin's testimony was corroborated when Brunswick-Burnside 
was on the stand. 


SENATOR THOMAS. Mr. McGrady's chief job was to try to 
settle strikes, was it not? 


SENATOR THOMAS. Why would you want to shadow him? 

MR. BURNSIDE. I presume, to see what his contacts were. I 
had those instructions from Mr. Clark, as I remember, to 
place him under surveillance. I presume it was to see who he 
was contacting, where he went. 

SENATOR THOMAS. Could it possibly have been because you 
did not want to see the strike settled? 

MR. BURNSIDE. No, sir. 

SENATOR THOMAS. That you wanted to sell more of your 
wares ? 

MR. BURNSIDE. No, no. 

SENATOR THOMAS. You know that there has been testimony 
given here that that has been done, do you not? 

MR. BURNSIDE. So I understand. 

SENATOR THOMAS. Did you know that Mr. McGrady was 
Assistant Secretary of Labor at the time you shadowed 

MR. BURNSIDE. I do not believe I knew his exact title, Sena- 
tor. I knew he was connected with the Labor Department; he 
was there as conciliator or mediator, or something of that 

SENATOR THOMAS. Would it be commonplace for you to 
accept a task like that, shadowing Government men ? 

MR. BURNSIDE. Well, in shadowing anyone, Senator, that a 
client, whom we considered responsible, had reason to take 
interest in, as to their movements and so on, if it appeared 
there was nothing unethical or nothing illogical about it, I 
presume we would take the job, whether they were Govern- 
ment officials or who they were. 

SENATOR THOMAS. Do you think any of your employees 
had an idea which way Mr. McGrady's opinions would tend, 


coward the right or toward the left, toward radicalism or 
toward conservatism? 

MR. BURNSIDE. Mr. McGrady, as far as I know, always had 
a very fair reputation, a reputation as being fair, not being 
inclined toward one side or the other. That is why he has been 
so successful in settling a great many of these difficulties. 

SENATOR THOMAS. If Mr. McGrady is such a fine man, 
what about the ethics of eavesdropping, putting a couple of 
men next to his room to listen? 

MR. BURNSIDE. To try to, as Mr. Martin said, hear what was 
going on in there, to see what progress was being made. If it 
were for the holding company, [General Motors], for instance, 
they might be interested in knowing how soon the thing was 
coming to a settlement, so that they could make their plans 
accordingly . . . 

SENATOR THOMAS. In the Chevrolet strike in Toledo in 1935, 
what information could be more important to General Motors 
than to know what concessions the union would make, Mr. 

MR. BURNSIDE. That would be important, yes. 

SENATOR THOMAS. In other words, if you had gotten some in- 
formation that you could have sent on to your employers in the 
shadowing of Mr. McGrady, it would have been a trump card 
in your espionage work, would it not? 

MR. BURNSIDE. They might consider it so. 

SENATOR THOMAS. It would very largely interfere with bring- 
ing about a settlement? 

MR. BURNSIDE. It might have an effect. 

SENATOR THOMAS. Well, Mr. Pinkerton, do you think so ? 


SENATOR THOMAS. . . . What about interfering with the 
bringing about of peace? That is the aim of the conciliator. He 


represents the public. He does not represent the strikers and he 
does not represent the concerns at all, but he represents the 
general public. Now, in that position he must have the abso- 
lute trust of both sides or else all his work is ineffective. The 
minute you spy on him you cannot do anything else but break 
down that trust. 

MR. PINKERTON. If the fact is known it would have a bearing 
on it. 

SENATOR THOMAS. To give an actual illustration, any evi- 
dence the union committee reveals of what it might concede, 
if through that, your General Motors, that is, your employer, 
learns that, it would be extremely valuable to General Motors; 
would it not? 

MR. BURNSIDE. I presume it would. 

SENATOR THOMAS. For example, put it in simple arithmetic: 
If the strikers are striking for a raise of 50 cents a day in the 
case, and the conciliator knows that they will accept 25 cents 
a day but the firm does not know it as yet but you find out that 
they would, would it not be the stupidest firm on earth that 
would not hold out for a saving of 25 cents ? 

MR. BURNSIDE. It would seem to me that if the conciliator 
knew that the 25 cents was a common meeting ground, that 
that would be the point to fix the settlement, anyway. 

SENATOR THOMAS. Yes; but you have got that and you tell it 
to the persons on one side and they have got that information. 
Do you not see that you have given them a weapon whereby 
they will hold out and hold out until they [the strikers] break? 

MR. BURNSIDE. I can conceive of that; yes. 

In the McGrady case the Pinks admitted shadowing a govern- 
ment official. Still, in all fairness to them, it must be admitted that 
other evidence was introduced showing that they were prepared at 
any time to work not on but for government officials, if they were 
given the opportunity. This evidence was extremely interesting be- 


cause to do so would have been a violation of a law passed on March 
3, 1893. The law was a direct result of the major part played by the 
Pinkerton Agency in the bloody Homestead Strike. Congress, at 
that time, was so outraged by this employment of private detec- 
tives which resulted in ten deaths, that it passed the law prohibiting 
the Federal Government or any of its departments from ever em- 
ploying detective agencies and it mentioned the Pinkerton 
Agency specifically. 

But a law passed by the Congress of the United States was a 
mere detail to be lightly brushed aside when the Pinks were after 
business. Detective agencies are on to every trick of the game when 
it comes to beating the law, and the Pinkertons are no exception. 
Order 106 of the Pinkerton Order Book is a gem in that it first 
quotes the law prohibiting the employment of the agency, and then 
goes on deliberately to show how that law can be evaded! 

SENATOR LA FOLLETTE. I will read certain portions of ... 
page 4 of Order 106 taken from the Pinkerton Order 

" 13. United States Government. 

(a) Act of March 3, 1893, Vol. #2. p. 121, Supp. R.S.U.S. 
provides 'That hereafter no employee of the Pinkerton's De- 
tective Agency, or similar Agency, shall be employed in any 
Government Service, or by an officer of the District of Co- 
lumbia . . .' 

(b) Under this law the United States Government can re- 
fuse to pay Agency's bills. 

(c) When solicited by United States officials, their atten- 
tion should be called to this law and, if responsible, their per- 
sonal guarantee for payment of our account secured, other- 
wise from some other responsible person. 

(d) The law has been overcome by Government officials 
by our rendering to them two bills. One in the usual detail, the 
other on plain paper for the total amount for them to use as a 
voucher, as exampled: 


John Smith (the official) 
To Peter Doe (An agency clerk's name) 
For services and expenses $375.25 
(e) Reports should be rendered on plain paper, operative 
designated by number and not signed, and with no mention of 
the agency." 

Now, it is clearly the intent of that order, is it not, Mr. Pink- 
erton, to indicate methods of evading the law ? 


A detailed bill and a fake bill the same technique that was in 
use for General Motors. Fool the workers in one case, fool the law 
in the other. (Note that there must be two sides to this illegal bar- 
gain government officials on the one, Pinkertons on the other.) 

The Social Security Act which required that the names of em- 
ployees be filed with the government authorities gave the agencies 
a real headache. Because secrecy is so essential to their business 
they felt that they must not reveal the names of their operatives. 
But the law said they must. What to do about it? 

There's always a way out for these slippery boys. They solved the 
problem by removing the operatives from their own payroll and 
having them appear only on the payroll of the corporations in 
which they were operating. Brilliant stroke, wasn't it? John Mo- 
hacsi, C.A.C. operative, tells how it worked in his case: "In and 
about January 4, 1937, 1 was called into the office by Stewart and I 
filled out a card resigning my position with the Int. Aux. Corp. I 
was then instructed to sign a new contract of employment for the 
handing in of reports to the Worthington Pump Company. I was to 
receive the same amount of pay but it would come directly from the 
Worthington Pump Company. All my reports and activities were 
to continue in the same way, being supervised by Stewart of the 
Int. Aux. Corp. and there was no change in the manner or place to 
which I was to send my reports." 

When Smith, C.A.C. president, was asked why his corporation 
had inaugurated this new practice this was his answer: 


MR. SMITH. Oh, it is a question of the Social Security Act, I 

SENATOR LA FOLLETTE. To relieve your corporation of the 
responsibility of reporting under the Social Security Act? 

MR. SMITH. Yes. 

State and city laws requiring registration of operatives were a 
nuisance. There were, of course, ways of getting around these laws, 
and in some states, some agencies pulled fast ones like that of 
C.A.C. on the Social Security Act. But occasionally the boys 
slipped or else they just didn't bother to obey the law. The evi- 
dence shows that Railway Audit violated the Wisconsin law re- 
quiring registration of operatives; that Corporations Auxiliary 
"complied" with the Wisconsin law by a trick but paid no at- 
tention to a similar law in the state of Indiana; that the Pinkerton 
Agency did not register at least one secret operative in Atlanta, 
where there was an ordinance requiring such registration. 

In its returns to the men at the top, and in its hooking aspect, the 
spy industry has been likened to the business of organized prostitu- 
tion. In its method of getting and keeping business the spy industry 
is like the armament industry. 

In the United States one unique offshoot of the business of mak- 
ing armaments for warring nations is the business of making muni- 
tions, tear gas, and machine guns for industrialists for "plant pro- 
tection" in case of strikes. This offshoot of the armament industry, 
like its parent, thrives on trouble. Business is best when the cus- 
tomer is scared. Orders roll in when the customer's security is 
threatened. Federal Laboratories, Inc., the Lake Erie Chemical 
Co., and the Manville Manufacturing Co., the three principal 
munitions makers for industrial use in the United States, are ever 
on the lookout for what they call "trouble" i.e., strikes. 

So with the spy agencies. They too thrive on "trouble" defined 
by them as "any attempt by workers to organize." Let a union 
organizer show his head in any locality and the salesmen for the spy 
agencies turn up at once soliciting business. The similarity is plainly 


illustrated in a comparison of letters from the munitions and spy 
agency salesmen. Mr. Herrick Foote, munitions salesman of New 
Haven, Conn., writes to Mr. A. S. Ailes, vice president of the Lake 
Erie Chemical Co. on April 5th, 1935. "I am doing a lot of mis- 
sionary work in anticipation of a strike this spring, and I'm in a 
position to send in some good orders, if it will only mature. Wish a 
hell of a strike would get under way." Two months later, he writes 
again as the situation gets hotter: 

NEW HAVEN, CONN., June 15, 1935. 

Lake Erie Chemical Company, Cleveland, Ohio. 
Dear Mr. Ailes : I beg to advise you that at a meeting of the 
national officials of the United Textile Workers Union of Amer- 
ica held at Providence, R. I., yesterday demanded a 20% in- 
crease in wages for the workers in the cotton and woolen mills 
and if this 20% increase was not given within the next ten 
days, a general strike throughout the country would be called. 
This looks like some business and if this strike matures it will 
be a bad one. Hope you have something definite as to the new 
long range gun, as we will be in a bad way, if this strike gets 
under way and we have no long range guns . . . I hope that 
this strike develops and matures and that it will be a damn bad one 3 
we need the money . . . Everyone wants to be up on their toer> 
watching this situation and work fast . . . 
Very truly yours, 


Just as Mr. Foote of the munitions industry saw business coming 
his way as a strike situation developed and matured, so Operative 
423 (W. H. Gray, of Railway Audit) looked for business in Tennes- 
see where, in July 1935, a number of A. F. of L. organizers had 
made their appearance. Mr. Gray of the spy agency was following 
Foote's prescription for the munitions men he was on his toes, 
watching the situation, and working fast: 


Att: 700 [Mr. L. D. Rice, vice-president and general manager] 

7- 2 5 

I picked a Tenn. Labor Paper, and found that there is con- 
siderable activity going on around Johnson City, Tenn., as well 
as Knox[ville]; also the Hosiery Workers are getting aroused in 
Nashville, 'Tenn. I will get to Johnson City as soon as I can 
without haveing to make to long a jump . . . Mr. Temple 
showed me a letter from the Tenn. Mfg. Assoc; Sect, from 
Nashville, Tenn. and they are very much alarmed over there, 
as there Wash. Rep. [representative] reports that AFL. sent 
out 600 L:O [labor organizers] in the past two weeks, and 
plenty of them headed South, so I will get out of here to-mor- 
row and work to ward Nash. Tenn. . . . 
Yours Truly, 

How shall we mark Operative Gray's work? 

Spelling 40 

Spotter of union activity 100 

Effort 100 

That both the munitions and the spy industries should be on the 
lookout for trouble areas where they could sell their services was to 
be expected. They are alike again in that when they are unsuccess- 
ful in their hunt for trouble when the trouble they are looking 
for has not yet come to the surface then they either make it or 
fake it. The story of how the armament makers stir up trouble, 
then profit from the trouble they have made, has been told re- 
peatedly in books and pamphlets. But how do the spy agencies 
make trouble and profit from it ? 

Mr. Holderman, the hosiery union official who testified to an 
agency's unsuccessful attempt to hook him, tells how: 

MR. HOLDERMAN. . . . He [the agency operative] then gave 
me instructions not only to mail in the reports on the union, to 
him, but also that I was to, as district manager, immediately 


tighten up on conditions in the Gotham Hosiery Co., which 
had a mill in Dover, N. J., and one in New York City, which, 
combined, employed about 1 200 people. 

SENATOR LA FOLLETTE. What did you understand him to 
mean when he said to "tighten up on them?" 

MR. HOLDERMAN. I was to go after increasing the wages and 
shorten the hours in behalf of the -people there. We subsequently 
checked up on why these instructions were given, and we found 
that at the same time these instructions were issued to me the 
representative of the same company had approached the Gotham 

SENATOR LA FOLLETTE. You mean the same detective agency? 

MR. HOLDERMAN. The same detective agency, tfhey ap- 
proached the Gotham management and they told them that trouble 
was brewing in their Dover and New Tork plants and that they 
could solve their labor difficulties. 

SENATOR LA FOLLETTE. You mean that the detective agency 
could solve them ? 

MR. HOLDERMAN. The detective agency could solve these la- 
bor difficulties and prevent the trouble which was at that time 

Marvelous scheme, isn't it? The agency sends one of its spies into 
a plant through the back door to stir up trouble; then it sends one of 
its smooth salesmen through the front door to sell its services in 
putting down the very trouble that it has itself brewed! And a 
duped, frightened plant management usually falls for it! 

This technique for getting business is so fantastic that it's almost 
unbelievable. But it's true. Take the word of Senator Wheeler of 
Montana. On April 7, 1937, on the floor of the Senate Chamber, 
Senator Wheeler said: "I have had a great deal of experience . . . 
with the industrial spy system . . . When I was a prosecuting 
attorney I had occasion to investigate some of these cases. I found 
that what would happen would be that industrial spies would get 
into a union and then would go out and try to get decent union 


men to commit some crime to blow up a transformer, to put 
dynamite under a building, or blow up something or they would 
drive nails into logs or set fire to mines and try to get decent men 
belonging to the unions to do these very things, for the purpose of 
creating jobs for the spies' particular organization. In two particular 
cases we had direct, positive evidence of this being done . . . 

"As I said a moment ago, these spies would get into the union, 
and then would go out and create a situation whereby they would 
frighten the lawyers and the officers of the company to such an ex- 
tent that they would have to employ a great many more men to 
watch these 'dangerous' men; and when the 'dangerous* literature 
that was being put out, or the suggestions that were being made by 
supposedly bad men, were traced down, they were almost invari- 
ably traced to the Pinkerton or the Burns or the Thiel detective 
who was lurking in the background." 

Not only do spy agencies make trouble to get business, but they 
also fake trouble to keep the business once they have got it. 
Lyle Letteer, former Pinkerton operative, tells about the instruc- 
tions he received on a job for General Motors, from Mr. Littlejohn, 
superintendent of the Atlanta office. 

MR. LETTEER. . . . To use his expression, he said that my 
reports would have to have more meat in them. 

SENATOR LA FOLLETTE. Did Mr. Littlejohn tell you why to 
make them meatier? 

MR. LETTEER. He said he wanted to pull the investigation along. 

SENATOR LA FOLLETTE. Wanted to what? 

MR. LETTEER. Prolong the investigation. 

SENATOR LA FOLLETTE. How did he say it would prolong it if 
you made your reports longer and meatier ? 

MR. LETTEER. He said if I made the reports longer and put 
more meat into them, that the Detroit office would carry them 
along quite a while longer than they ordinarily would run. 

Littlejohn of Pinkerton's wasn't the only one who had this 


bright idea. When Mr. Kuhl worked for National Corporation 
Service, he gave the operatives under him the same cute advice: 

SENATOR LA FOLLETTE. Did you ever assist in building up 

MR. KUHL. Well I did to this extent: To use the expression 
that is used in these kind of companies, I have went out and 
put the "heat" on. 

SENATOR LA FOLLETTE. Just tell US about that. 

MR. KUHL. For instance, an operative was falling back in his 
work, or this client does not seem to think he is receiving 
enough information, why, you go out and get hold of these 
"ops" and tell them; come right out and tell them flat turkey, 
"It is your job, too, so maybe you better use your imagination a 
little and write something in here that is of interest to the client" 

This looks very much as though the agencies occasionally double- 
cross the employers who hire them. They do. As long ago as 1923, 
that fact was plain to Roger W. Babson, who has made it his life 
work to advise business men how to make money. In a special 
bulletin to industrial leaders in that year, Mr. Babson solemnly 
warned them against spy agencies. "There are a score or more of 
these industrial spy agencies at work in the country. They act 
under all kinds of names which give no hint of their real work. Im- 
mense sums are paid to them by our employers. 

"This is a serious blunder on the part of corporation leaders. It 
stirs up trouble where none exists. It is the most potent breeder of 
radicalism that we have . . . The 'boring from within' which radi- 
cal agitators are charged with, is a drop in the bucket to the boring 
that the industrial spy does for money which the employer pays. 
These spy agencies set out to find rottenness, and if they do not 
actually find it, some make it or fake it." 

It is now fourteen years since Mr. Babson wrote this bitter attack 
on one of the "services" the detective agencies perform for corpora- 
tion leaders. At that time, strike-breaking was another agency 
service paid for by industrialists. It still is. But the weapons used 


in strike-breaking have changed and as you can easily guess, the 
smart dick agencies have kept abreast of the times. Where formerly 
agency thugs would use only blackjacks, clubs, and bullets to break 
up a picket line, the 1937 model includes tear gas, vomiting gas, and 
the like. A sales circular of the Lake Erie Chemical Co. thus de- 
scribes the effects produced by one of its nauseating gases: "Once 
rioters have been subdued with K.O. gas they will not invite an- 
other dose until their memory of the last experience becomes very 
dim, indeed. What does K.O. gas do to the victim? 

"i. Violent nausea and vomiting. 

" 2. Sense of suffocation as if several men were sitting on chest. 

"3. Intense pain in chest and head . . ." 

This is actually one of the less harmful weapons now available to 
strike-breaking agency thugs. A more dangerous one, put out by the 
same company, is thus described in the sales circular: "The gas 
from the Green Band grenade is invisible making it more effective 
and terrifying, because it is not possible for the rioters to determine 
where the gas cloud begins or ends as is the case with all burning- 
type munitions." From another circular, describing the same 
weapon, we learn that "The grenade body tears into ribbons and 
these ribbons, together with firing mechanism, are thrown with 
considerable force in all directions from point of burst, with pos- 
sible severe injury to persons within a radius of approximately fif- 
teen feet thereof. 

"This grenade should not be thrown into a crowd unless very 
severe treatment is necessary, as the pain from the high concentra- 
tion of this gas in the eyes, nose and throat is almost unbearable. 
Unless drastic treatment is necessary, throw the grenade about 30 
or 40 feet 'upwind* of the mob." 

Pretty toys these, aren't they, to be put into the hands of strike- 
breaking agency operatives, many of them with criminal records a 
mile long! And that it often is the detective agencies which use such 
weapons is shown in part of a letter written by the secretary- 
treasurer of the Manville Manufacturing Co. to a salesman: "In 
regard to your questions, I will try and answer them as follows: Our 


equipment was used to break up the strike of the Ohio Rubber 
Company at Willoughby, Ohio, and to break up the strike in the 
Gear Plant of Toledo, Ohio; was used at the Eaton Axle plant at 
Cleveland, at the Real Silk Hosiery Company, of Indianapolis, and 
at a great many smaller places. In each of the above cases the 
equipment was used by the detective agencies brought in to pro- 
tect the plant . . ." 

Further proof. The following is particularly interesting because it 
brings to light the same kind of monkey business that we've met 
earlier even more vividly. For here is a shipment of gas and muni- 
tions, etc., for the Firestone Tire Company, Akron, Ohio, which is 
shipped to a Joseph Folk, Lakewood, Ohio, part of it sent as a gift 
to a D. C. Graham, and billed to the Pinkerton agency! 

SENATOR LA FOLLETTE. Will you look at exhibit 213, please, 
Mr. Ailes? Is this a copy of a work order of the Lake Erie 
Chemical Co.? 

MR. AILES. It is, apparently. 

SENATOR LA FOLLETTE. This is a work order of the Lake Erie 
Chemical Co. It shows a large number of various kinds of equip- 
ment: gas fountain pens, .410 caliber, serial number; Baby 
Giant gas projector; Baby Giant gas projector shells; watch- 
men's clubs; watchmen's club shells; gas riot pistols; gas riot 
pistol shells; hand grenades; Universal, Universal C N. What 
does "CN" refer to? 

MR. AILES. Tear gas. 


MR. AILES. Nauseating gas. 

SENATOR LA FOLLETTE. L R field gun, L R shells. That is long 
range ? 

MR. AILES. Long range; yes. 

SENATOR LA FOLLETTE. Band, candles, and so forth, warning 
label in shipment. One Baby Giant gas projector and three 
Baby Giant gas projector shells are marked as a gift to D. C. 
Graham. Do you know anything about that? 


MR. AILES. I don't know about him. 

SENATOR LA FOLLETTE. It says " For Firestone Tire, Akron, 
Ohio, ship to Joseph Folk, Lakewood, Ohio." Do you know 
who he is? 

MR. AILES. I do not. 

SENATOR LA FOLLETTE. And then it says, "Send or give bill 
to Pinkerton." What does that mean; that they are the people 
to be billed for the shipment? 

MR. AILES. It probably means that, if they are to get the bill. 

Mixed up as this transaction was, it was quite clear that the 
equipment was to be used at the Firestone plant. On another order, 
the Lake Erie Chemical Co. was not as frank about who the real 
purchaser of the equipment was. Look this bill over and try to 
determine who bought the goods: 

July 11, 1935. 

Sold to: W. H. Grabbe, 147 South 2ist St. Terre Haute, Ind. 
Shipped to: J. B. South c/o Railway Express Co.; Terre 
Haute Ind. via B/L 5354 

Express Paid 
75 Universal tear gas candles, no. i, series Nos. 

6-284, to 2903 and 3004 to 3015, $10.00 $750.00 

25 Universal K O & Lightning #5 candles, no. 2755 

to 2779, $14.00 35 - 00 

4 Long range field gun outfits complete, each con- 
sisting of 

1 carrying case 

7 long range tear gas shells 

7 long range K O & tear gas shells 

2 illuminating star shells 

4 long range field guns, nos. 1 1 19, 1008, 1013, 
and 1018 


Plus express paid 14.02 




It looks as though this shipment of goods was sold to a Mr. W. H. 
Grabbe, doesn't it ? Actually, the Columbian Stamping & Enamel- 
ing Co. of Terre Haute was the real purchaser. This particular sale 
is of especial interest because the go-between in the transaction was 
Mr. Edgar E. MacGriffin, president of the National Corporation 
Service, a dick agency. MacGriffin got a commission of 20%, or 
$373. 60 for arranging the sale. Thus we learn that not only do the 
agencies make use of the equipment of munitions firms on jobs 
which they are handling, but the tie is even closer agency officials 
on occasion even act as salesmen for munitions firms. 

In fact, the tie was so close in one case that the spy agency and 
the munitions firm were one and the same. The agency in question 
was Railway Audit and the munitions outfit was Federal Labora- 
tories, Inc., the largest of the munitions firms. Mr. G. Eugene Ivey, 
whom we have met before as manager of the Atlanta office of Rail- 
way Audit, seems to have been a veritable Pooh-Bah; besides 
acting as manager, he was lawyer for Railway Audit and at the 
same time he was District Manager of Federal Laboratories. 

SENATOR LA FOLLETTE. How long were you district manager 
for them? 

MR. IVEY. Only during the time that the Railway Audit Co. 
represented Federal Laboratories. 

SENATOR LA FOLLETTE. And how long was that ? 

MR. IVEY. I believe about a year and a half. 

SENATOR LA FOLLETTE. And during that time you were 
running the Federal Laboratories' business and the Railway 
Audit & Inspection Co.'s business at the same time? 

MR. IVEY. Well, it was all one. 

SENATOR LA FOLLETTE. Out of the Atlanta office? 

MR. IVEY. Well, it was all one. 


MR. IVEY. Yes, sir. 


What a pity that this intimate relationship existed for only a year 
and a half! However, the couple will be brought together again. It 
must be. So wonderful a marriage the union of a detective agency 
with a munitions firm cannot be broken permanently. The two 
partners have so much in common. Wedlock opens up possibilities 
that are breathtaking in their magnitude. 

Think of it. A Spy Agency-Munitions Trust that could offer 
complete service from start to finish. What a chance! Just imagine 
how beautifully the Union-Smashing Strike-breaking Co. Inc. 
could function. The Trust could be composed of four departments 
each one tying up with the other, and all working together har- 
moniously like a well oiled machine. In many cases, the industrial- 
ists will seek out the service. When that doesn't happen, then 
business can be worked up in some such manner: 

1st. The Espionage Department plants a spy in Mr. Industrial- 
ist's factory to get the dope on any existing union activity if 
there isn't any, he starts it going. 

2nd. At the appropriate moment the Sales Division's slickest 
salesman approaches Mr. Industrialist and sells him USSBC in- 
dustrial service. 

3rd. A specially trained operative with a vivid imagination 
edits the spy's reports so they are "full of meat," with the usual 
effect: Mr. Industrialist is thrown into a panic of fear. 

4th. A representative from the Munitions Section finds it a 
simple matter to sell the frightened Mr. Industrialist a load of 
munitions for "plant protection." 

5th. Trouble. Either a strike is called by the union and its offi- 
cials when the situation warrants it, or else the spy provokes an 
ill-advised strike. 

6th. The Strike-Breaking Department immediately answers 
Mr. Industrialist's plea for assistance. Several hundred strike- 
breakers enter the plant. 

yth. Mr. Industrialist's second and much larger order for 
munitions is quickly filled. 


8th. A riot breaks out as the strike-breaking thugs attack the 
unarmed pickets with USSBC Fast-Flite shells and tear gas. 


9th. The strike is broken. 

loth. A crack salesman now convinces Mr. Industrialist that his 
greatest need is strike insurance. More spies and more munitions 
are brought to the plant, and the Strike-Breaking Department 
supplies a permanent staff of "plant police." 

Such a scheme makes sense. How much more sensible that all 
these related services be supplied by one big company, e.g., The 
Union-Smashing Strike-Breaking Co. Inc., than that a lot of little 
separate firms be competing for the different parts of what is 
essentially one business. The Trust idea is not new. It has happened 
in other fields. Why not in this one? 

The obvious first step is to find an experienced person with a 
genius for organization. Who will perform for this industry the 
organizing job which Rockefeller did for oil and Mellon for alum- 
inum ? The man who attempts it must have all the energy, cunning, 
and strength of our famous robber barons; he must be ruthless, 
dishonest, crafty, diabolical, corrupt, and lawless. 

The encouraging thing is that the search for an individual with 
all these essential qualities need not be extensive. Most agency 
officials today can easily fill the bill. 

VI. Employers Organize 

We rarely hear, it has been said, of the combinations of masters; 
though frequently of those of workmen. But whoever imagines, 
upon this account, that masters rarely combine, is as ignorant of 
the world as of the subject. Masters are always and everywhere in 
a sort of tacit, but constant and uniform combination . . . We 
seldom, indeed, hear of this combination, because it is the usual, 
and one may say, the natural state of things which nobody ever 
hears of. 

ADAM SMITH, Wealth of Nations 

THAT WAS WRITTEN in 1776, the year we declared our inde- 
pendence from England. What was true at that time is more than 
ever true today. With the rise of capitalist industry, combinations 
of employers have reached their highest development. In the 
United States more than 2,000 employers' associations have been 

Why ? Professor Clarence E. Bonnett, in his Employers 9 Associa- 
tions in the United States, a standard book on the subject, defines 
employers' associations and gives us the reason for their formation: 
"Any association, alliance, league or federation which intends to 
promote, directly or indirectly, primarily the employers' interest in 
relation to labor, is an employers' association." 

Usually it's easy to spot an employers' association from its name. 
When you hear of the National Association of Manufacturers, or the 
Akron Employers' Association, or the National Metal Trades 
Association, you know at once what it is. If you read the speeches 
delivered at the meetings of the United States Chamber of Commerce 
or any of its local branches, the fact that they are employers' associa- 



tions devoted to promoting employers* interests becomes plain im- 
mediately. You are, however, apt to be fooled by such names as the 
"Stark County Tax League," or the "Citizens' Alliance of Ram- 
sey and Dakota Counties." These, too, are types of employers' 
associations just as any company union is. A good test is: who 
puts up the money. If employers' money is used to support an 
association, it's a safe bet that its purpose is to promote employers' 

Many employers in the United States feel that it is to their 
interest to crush genuine unionism. A major purpose of employers' 
associations, therefore, is to smash trade unions. It is no surprise to 
us to learn, then, that employers' associations are among the best 
clients of the dick agencies. W. Sherman Burns so informs all his 
office managers in a letter ordering them to solicit the business of 
some one hundred odd associations in every part of the country: 

General Instructions 

All Office Letter #704 

Re: Soliciting, industrial work. 

NEW YORK, July 28, 1936 
To all offices: 

Attached is a list of associations, their addresses, name of 
active officer and telephone number. This list was secured by 
Mr. Patterson of our Detroit Office, who received information 
at the time of securing this list that all of these organizations 
are very much interested in industrial undercover work and 
have a great deal to say in their respective territories, in an 
advisory capacity as to what industrial undercover service 
should be utilized by their members. 

One of the principal functions of these associations and their 
officials is to make a study of the labor movement and to keep 
their members advised of all developments concerning their 
movement . . . 

It is therefore suggested that each manager personally con- 
tact with the officials of these organizations in the cities where 

United Automobile organizers show a friendly smile as Ford's 
service men advance grimly. The unionists are, left to right, Robert 
Cantor, Victor Reuther, Richard T. Frankensteen, and J. J. 
Kennedy (Pictures, Inc.} 

The muffled target in the center is Frankensteen, chief organizer 
for the Detroit district. The old guard tactic of pulling up the 
coat and then slugging is shown graphically here (Pictures, Inc.] 



Down below The Frankensteen battle took place on the overpass. 
Guards go to work on another union man (Pictures, Inc.) 

Memorial Day Massacre" at Republic Steel 

(Pictures, Inc.) 


our offices are located, and in other localities, contact by 
mail . . . 


One of the names on the attached list was that of the " Employers 
Association of Akron, 500 Central Savings & Trust, Akron, Ohio 
. . . H. C. Parsons, Sec." The Burns man whose job it was to 
solicit business from Mr. Parsons was doomed to disappointment. 
A rival of the Burns agency, the Corporations Auxiliary Co., 
had had the business of this employers' association sewed up for 
over a quarter of a century. Mr. Parsons, on the stand, tells the 
story. It is a fascinating story. It shows, among other things, that 
four manufacturers of tires, in fierce competition with each other, 
were able to forget their business enmity and unite in an organiza- 
tion presenting a solid front against labor; rivals in business, friends 
in anti-labor activities. Nor did their association stand alone. It 
had a close connection with similar employers' associations through- 
out the country. A local union of manufacturers tied to a national 
union. In effect, an A. F. of M. American Federation of Manu- 
facturers. Adam Smith knew his stuff. 

Here is Mr. Parsons testifying: 

SENATOR LA FOLLETTE. What is your occupation, Mr. Par- 

MR. PARSONS. I am secretary-treasurer of the Employers' 
Association of Akron. 

SENATOR LA FOLLETTE. When was the Employers' Associa- 
tion formed, approximately? 

MR. PARSONS. I think 1903. 

SENATOR LA FOLLETTE. Who are the officers of the association 
at present? 

MR. PARSONS. There is Mr. Slusser, of Goodyear; Mr. Pit- 
tinger, of Firestone . . . Mr. Charles Jahent, of General 
Tire . . . Mr. T. G. Graham, factory manager of the B. F. 
Goodrich Company. 


SENATOR LA FOLLETTE. Are those all on the executive com- 

MR. PARSONS. That is all. 

SENATOR LA FOLLETTE. The executive committee, then, is 
confined to representatives of the tire manufacturing com- 
panies in Akron ? 

MR. PARSONS. Yes; at the present time. 

SENATOR LA FOLLETTE. How much do the companies pay to 
the Employers' Association each year? 

MR. PARSONS. It formerly was 5 cents per employee and then 
was later raised to 8 cents, and more recently again to 5 cents. 
[A list of the members of the association and the amounts of 
their contributions, 1933-1936, is in Appendix D.-AUTHOR] 

SENATOR LA FOLLETTE. What salary did you receive from the 
association, Mr. Parsons? 

MR. PARSONS. $8,019 this last year. 

SENATOR LA FOLLETTE. What are the chief items of expendi- 
ture of the association? 

MR. PARSONS. The ordinary office expenditures, salaries, 
expenditures for special service. 

SENATOR LA FOLLETTE. What do you mean by "special serv- 

MR. PARSONS. The service of the Corporations Auxiliary 

SENATOR LA FOLLETTE. And how long have you had the serv- 
ice of Corporations Auxiliary? 

MR. PARSONS. As I remember now, there were somewhat the 
same services there at the time I became secretary. [33 years 

SENATOR LA FOLLETTE. And it has continued throughout 
the time you have been secretary? 

MR. PARSONS. Off and on, as I remember it; yes. 


SENATOR LA FOLLETTE. Have the activities of labor organ- 
izers for outside unions had anything to do with the ebb and 
flow of your employment of Corporations Auxiliary ? 


SENATOR LA FOLLETTE. They have risen at times when or- 
ganizational activity by outside unions was in progress ? 


SENATOR LA FOLLETTE. And fallen when they were not ? 
MR. PARSONS. That is about right . . . 

SENATOR THOMAS. Do you attend annual meetings of other 
employers' organizations ? 


SENATOR THOMAS. What organizations are you affiliated 
with in that way? 

MR. PARSONS. Well, we are not affiliated. I attend the meet- 
ings of the National Association of Manufacturers, the Na- 
tional Founders Association, on invitation, the National Metal 
Trades, and the National Industrial Conference. We are affili- 
ated with the National Industrial Council. 

SENATOR LA FOLLETTE. In 1936 I think the records you fur- 
nished the committee indicate that your costs for Corporations 
Auxiliary Service were approximately $21,000 . . . The total 
of your income in 1936 . . . was $36,000, and your own salary 
was $8,000; so it is a fair deduction, is it not, from these figures, 
that the bulk of the activities of the employers' association in 
Akron was devoted to labor espionage? 

MR. PARSONS. I would not say the bulk of the activities, 
Senator; I would say the bulk of the expenditures. 

SENATOR LA FOLLETTE. . . . The principal activity of the 
association aside from the work that you and your secretary 
did with the mimeograph and the meetings and the discussing 
of these various matters with representatives of the various 


companies that you have told us about, the principal and sole 
activity of the association outside of that was industrial 
espionage ? 

MR. PARSONS. Yes, that is true. 

Now all this testimony of Mr. Parsons was very embarrassing to 
Mr. Paul W. Litchfield, the president of the Goodyear Tire and 
Rubber Co., who had testified the previous few minutes. His 
testimony had sounded sincere, straightforward just what was 
to be expected of a great captain of industry. But before Par- 
sons had gone very far it developed that Mr. Litchfield was as 
much of a twister as the other witnesses perhaps a little worse. 
The pious flourish with which he began ended in a complete fizzle. 
Read the testimony and witness the collapse of the highly inflated 
Goodyear dirigible as it is brought down to earth. 

SENATOR LA FOLLETTE. Mr. Litchfield, the committee would 
be interested in having your views on the use of labor espionage 
and strike-breaking agencies, if you would be so kind as to give 
them to us. 

MR. LITCHFIELD. When I came with the company in its early 
days we had one or two operatives in the plant, which we car- 
ried on for several years. In 1913 when we began to grow, my 
experience witb that sort of thing was such that it led me to pass on 
a firm order that from 1913 on there would be no outside agencies, 
no espionage in the plant whatsoever; and I think that policy has 
been carried out. We have not employed any outside agency of 
espionage or of strike-breaking organizations since I have been 
president of the factory, or manager of the company, so far as I 

SENATOR LA FOLLETTE. Did you or did you not find that the 
use of industrial espionage tended to disrupt the good relations 
between employees and the employers? 

MR. LITCHFIELD. We were inclined to that opinion. 


Just the kind of forthright straight-from-the-shoulder statement 
that you would expect from the head of one of the greatest com- 
panies in the world. Mr. Litchfield felt that the spy system dis- 
rupted the good relations between boss and worker, so he firmly 
ordered that henceforth there was to be "no espionage in the plant 
whatsoever" So far so good. Our schoolboy faith in this great busi- 
ness leader is strengthened. Let us go on: 

SENATOR LA FOLLETTE. As I understand it, the Goodyear 
Tire and Rubber Company is a member of the Akron Em- 
ployers' Association; is that correct? 

MR. LITCHFIELD. Yes; we are members of the Akron Em- 
ployers' Association, the same as any trade association or any 
other kind of an association. 

SENATOR LA FOLLETTE. And what is your understanding of 
the service that the association renders to your company and 
other members? 

MR. LITCHFIELD. It is just a general clearing bouse of informa- 
tion among the manufacturers. I have never questioned very 
much as to what service it rendered, on account of the fact that 
we just belong, the same as we belong to any trade association, 
chamber of commerce, or anything else. We are assessed our 
pro rat a share. 

SENATOR LA FOLLETTE. Well, I assume that you must feel 
that the services rendered are worth while because of your 
contribution of $50,000 for 2, years for 4 years, pardon me. 
Could you tell us in a little more detail what services the asso- 
ciation rendered? 

MR. LITCHFIELD. Well, so far as I know, the only thing that has 
come to my particular notice is statistics, from time to time, as 
to the number employed in each plant, and things of that nature. 

SENATOR LA FOLLETTE. Are you familiar with the fact, Mr. 
Litchfield, that during the year 1936 the Akron Employers' 


Association paid in excess of $21,000, or the bulk of its income 
to the Corporations Auxiliary Co. for industrial espionage? 

MR. LITCHFIELD. I did not know that; no. 

SENATOR LA FOLLETTE. And had you known it, would such an 
expenditure have met with your approval? 

MR. LITCHFIELD. It would not so far as our plant is concerned. 
What they do outside we do not have anything to do with, in 
the management of that association. 

SENATOR LA FOLLETTE. Were you aware of the fact that the as- 
sociation had undercover men in your plant? 

MR. LITCHFIELD. / was not aware of it. 

Nothing really wrong so far. It may be argued that Mr. Litch- 
field was showing bad judgment in paying out so much of his stock- 
holders' money to an association which supplied his firm with noth- 
ing more than a kind of statistical service. That may be true. But 
on the absence of industrial espionage in his plant he still remains 

Then Parsons testified. Now look for Mr. Litchfield's about-face. 

SENATOR LA FOLLETTE. Mr. Litchfield, were you a member of 
the executive committee of the association at any time ? 

MR. LITCHFIELD. I do not know whether it was the executive 
committee or what it was, but I was a representative of Good- 
year many years ago, when I was factory manager, in the early 

SENATOR LA FOLLETTE. Now, Mr. Litchfield, in order that 
the record may be complete, at the time you served on this 
executive committee, did you or did you not know of this 
arrangement that the association had with Corporations 
Auxiliary for undercover men? 

MR. LITCHFIELD. I think I did know that they did have that kind 
of an arrangement. 

SENATOR LA FOLLETTE. During all the time that you were a 
representative of the Goodyear Company in this employers' asso- 


ciation you knew, did you not, that they were using undercover 

MR. LITCHFIELD. / think that very likely I was aware of that 

SENATOR LA FOLLETTE. Mr. Litchfield, I understood you, in 
response to a question by Senator Thomas, to say you never 
took any action while you were representing the Goodyear 
Company on the employers' association, to secure an abandon- 
ment of their use of industrial espionage technique; is that 
correct ? 

MR. LITCHFIELD. I do not recall I ever discussed that matter, 
except to state my disapproval of the practice. I do not think 
I ever pursued it any further. 

SENATOR LA FOLLETTE. Did you make any effort after you 
assigned someone else to the work, to ascertain whether or 
not they had abandoned it? 

MR. LITCHFIELD. No; I did not. 

SENATOR LA FOLLETTE. And your company continued to 
contribute to the association and be a member of it? 

MR. LITCHFIELD. We contributed to that association the 
same as a great many others, in that they were one of a large 
group and wanted a group to be a clearing house, but we 
never attempted to run the association. 

SENATOR LA FOLLETTE. In the last 4 years you were paying 
out on the average of $ 17,000 a year to this association. As far 
as your knowledge went, you did not know there had been any 
change in the policy of this association in the use of industrial 


Turn back quickly to the opening brave speech of this witness. 

Seems like another fellow must have said those things, doesn't it? 

The Goodyear Tire and Rubber Co. was in partnership, through 


the Akron Employers' Association, with its biggest business rivals. 
The bond that united these competitors was the desire, common to 
all of them, to clamp down on the organizational activities of their 
workers. When the workers of the Goodyear Co. went out on strike 
in 1936, one of those miraculous "citizens' organizations" that 
spring up out of thin air to fight the strikers, suddenly made its 
appearance. The "Akron Law and Order League" was not a sur- 
prise to Mr. Litchfield. He knew it was going to be launched in 
fact he had discussed its organization with the presidents of Good- 
year's competitors. His own company contributed "something in 
the neighborhood of $15,000" to it. 

Mr. Litchfield was listening in on the radio when former Mayor 
C. Nelson Sparks went on the air for recruits for the Law and 
Order League. What was the program of this citizens' organization? 
What did Mr. Litchfield hear the nurse of his $15,000 baby say? 
Keep the name of the organization in mind as you read the remarks 
Mayor Sparks made, after mentioning the names of John Brophy 
and several other representatives of labor organizations: 

Help us to gang up for constitutional law and order in this 
wonderful city. Help us to make this Law and Order League so 
representative of public opinion that we can say to those 
out-of-town radical leaders, who have lighted the fires of dis- 
content in this city, to get the hell out of here, and we are not 
going to be too much interested in tbe dignity of their going. 

This from the former mayor of the city, the president of the Law 
and Order League! Small wonder that The Akron Ee aeon-Journal 
was alarmed. Its editorial for March iyth clearly pointed out that 
the Sparks' speech was a direct incitation to violence: 

No Room for Vigilantes! 

The most ominous note yet sounded in the prolonged 
Goodyear strike is the call for recruits to a "Law and Order 
League." The name is a misnomer. 

Resort to organization of a "citizens' vigilante" to open 
the Goodyear Company plants is an open invitation to 


rioting and violence. It is deliberately provocative and in- 
flammatory. It will produce the exact opposite of law and 
order . . . 

The speeches of former Mayor C. Nelson Sparks, over the 
radio Sunday, were unfortunate and ill-advised. He talked 
loosely of driving leaders of the strike out of town, imply- 
ing that typical vigilante mob methods might be in- 
voked . . . 

Unfortunately there was not a single note of calm 
reasoned thinking in the speech. It was the typical product 
of hysteria, when sanity is needed. It was incitation to 
trouble, rather than an invitation to peace. 

The Sparks move, dearly endorsed by the Goodyear Com- 
pany, has evoked a warning from the strikers that violence 
would be met with violence. Any man who stopped to 
weigh the present tense situation would have known that 
the counter-threat was inevitable . . . 

If the Law and Order League does not at once abandon 
its stupid and dangerous program, then Akron can prepare 
itself for a bath of blood . . . 

In the face of all this talk of violence, we renew our 
appeal for sanity and right-thinking. We are thinking in 
terms of human lives. We are thinking in terms of this 
city's future. The idea that any group of citizens can take 
the law into their own hands cannot be tolerated for a single 

Let there be sanity and industrial peace, not madness 
and war. 

The italicized words in the foregoing quotation show that there 
was no doubt in the editorial writer's mind as to who was behind 
the Law and Order League. Nor should there be any doubt in your 
mind as to who was behind the Flint Alliance that was so miracu- 
lously conceived in the General Motors strike; or the "John Q. 
Public League" and similar "citizens' alliance" groups that 
sprang up in the recent steel strike. They are all phoney. They are 
dummy employers' organizations the newest technique in 

Convincing proof of this fact was furnished to the La Follette 
Committee by Mr. E. T. Cunningham, in his testimony concerning 
the RCA strike in Camden, N. J. in 1936. Mr. Cunningham, in 
charge of labor relations for RCA, was impressed with a letter of 


introduction from Governor Hoffman, presented by Max Sherwood 
of the Sherwood Detective Bureau. (The close relationship of many 
local, state, and government officials with the dick agencies is 
shameful.) Mr. Cunningham hired the Sherwood agency on the 
strength of the Hoffman introduction, plus the promises of Sher- 
wood and his assistant, Williams. The description of the Sherwood 
technique is very revealing: 

MR. CUNNINGHAM. . . . Both Sherwood and Williams stated 
that the old method of using strike-breakers and violence and 
things of that kind to win or combat a strike were things of the 
past; that the way to win a strike was to organize community 
sentiment; that they had been very successful in handling plans 
of that sort. They showed me enrollment slips I cannot 
recall the exact title, but it was something like "Citizens' Wel- 
fare Committee" of such and such a city. They showed me a 
large full page ad, I believe from an Akron newspaper, in con- 
nection with a strike. They said they handled that. They sent 
men from door to door to get citizens to sign these membership 
slips, and if possible to get them to contribute to advertise- 
ments which would be run over the name of the so-called citi- 
zens' welfare organization, saying good things about the 
company and endeavoring in that way to promote a friendly 
public attitude to support the company. The details were a 
little more than that, but in substance that was the plan. 

SENATOR LA FOLLETTE. Did he say, or did you gather from 
the newspaper advertisements and the blanks that he showed 
you, just what the citizens' committee was to do? 

MR. CUNNINGHAM. Well, it was not clear, other than the 
favorable public reaction, throwing the weight to one's side as 
against the other; that is the only 

SENATOR LA FOLLETTE. Did this Akron newspaper ad, as you 
remember, was it signed by a citizens' committee? 

MR. CUNNINGHAM. Citizens' welfare committee, or something 
like that. 


SENATOR LA FOLLETTE. Was the general effect of the adver- 
tisement to create the impression on the reader that the citi- 
zens' committee was taking the company side of the affair in 
Akron, so to speak? 

MR. CUNNINGHAM. Tes; and 'without any apparent identity with 
the company; it was to appear as an independent proposal as Jar as 
the public was concerned. 

SENATOR THOMAS. Did he show you any editorials that he 
thought he could have printed in the newspapers as a result of 
this advertising? 

MR. CUNNINGHAM. There was something on that. My memory 
is not very good on just what he did show me, and I would not 
want to say exactly, but there was that impression, that edi- 
torials and news articles would be developed but that the 
citizens would be organized to take the lead in the interest of 
the company and employment and they would organize that 
and the company apparently was not having anything to do 
with it. 

SENATOR THOMAS. You apparently got the impression his big 
job was to mold public sentiment ? 

MR. CUNNINGHAM. That was the impression. At the time, the 
strike was something new to me and I thought it was worth 

SENATOR THOMAS. He was to use the radio, newspapers, and 
house-to-house methods ? 


SENATOR THOMAS. That is what they call missionary work in 
spy terminology; to take advantage of any opportunity to 
build public sentiment, feeling that pressure from without 
would probably do more good than work from within. 

MR. CUNNINGHAM. Yes, sir; that was substantially my 

SENATOR LA FOLLETTE. Mr. Cunningham, at this conference 
did they mention the fact that this might also be referred to as a 
law and order league, or something like that ? 


MR. CUNNINGHAM. Yes, sir. That was the main theme, now 
that you remind me; yes. 

It should be clear from this testimony that those people who join 
the "back-to-work" movements, the vigilante committees, law and 
order leagues, etc. are the dupes of the strike-breaking dick agencies, 
hired by the employers. 

Perhaps the most representative of employers' organizations in 
the United States is the National Metal Trades Association. For- 
tunately, we need no longer guess as to how it functions we 
know now, because its officers were witnesses before the La Follette 

The National Metal Trades Association on January 15, 1937, 
had a membership of 952 plants. It takes in those firms which em- 
ploy machinists, coppersmiths, boilermakers, pipefitters, etc. 
plants engaged in the manufacture of metals. The association be- 
gan in 1899 with about forty members. Some of the well-known 
member firms are: 

Chicago Branch Kelvinator Co. 

Continental Can Co. (5 Hartford Branch 

plants) United Aircraft Mfg. Co., 

Stewart Warner Corp. Pratt & Whitney Div. 

Cleveland Branch Underwood Elliot Co. 

AddressographMultigraphCo. Indianapolis Branch 

Warner & Swasey Co. Chrysler Corp. 

Detroit Branch Columbian Enameling & 

Briggs Manufacturing Co. Stamping Co. 

Chrysler Corp. Milwaukee Branch 

Fisher Body Corp. Allis-Chalmers Mfg. Co. 

Kelsey Hayes Wheel Co. Cutler Hammer, Inc. 

Murray Corp. of America New York & New Jersey Branch 

Timken Detroit Axle Co. Otis Elevator Co., Harrison 

Grand Rapids Branch Otis Elevator Co., Yonkers 

Grand Rapids Brass Co. Wright Aero. Corp. 


Rhode Island Branch St. Louis Branch 

Brown & Sharpe Mfg. Co. Continental Can Co. (2 plants) 

Morse Twist Drill & Mch. Co. Wagner Elec. Corp. 

The membership is based upon plants. Continental Can or 
Chrysler, for example, do not take out one membership for all their 
plants, but each plant takes out its own individual membership. 
The association has twenty-five local branches with headquarters 
in Chicago. Each of the branches employs a full-time staff. 

Mr. Homer D. Sayre, the Commissioner of the association, is the 
chief active official. On the stand, he explained the purpose of the 
organization in terms strongly reminiscent of Smith, president of 
Corporations Auxiliary: ". . . The membership itself sees the need 
for the work of this association, which is the attempt to establish 
harmonious and mutual relations in the shops of its members, be- 
tween its members and their employees . . . our primary interest 
... is to try and get the employer and employee to believe that 
their interests are mutual . . ." 

Sounds familiar, doesn't it? The pious talk is familiar and the 
method of establishing "harmonious relations'* between the em- 
ployer and employee whose "interests are mutual" is also familiar. 
For the National Metal Trades Association is not only an em- 
ployers' get-together group; it is a spy agency and strike-breaking 
agency as well. It attains its harmonious relations by the usual 
method of union-smashing. It is a stout believer in the principle 
of the "open shop" a shop open to non-union members only. It 
is very much concerned about the liberty and freedom of the work- 
ers in its member plants it defends to the last these workers' in- 
alienable right to choose not to belong to a real union. When these 
workers fall into error, when they show signs of exercising their 
equally inalienable right to join their own union, then the spies go 
to work, the men are quietly discharged, and harmonious relations 
are again restored. The union men, dubbed "agitators," are black- 
listed and peace reigns in the N.M.T.A. 


But even the best laid plans go wrong. Suppose this smooth- 
running machinery cracks up and the workers, in their blindness, 
forget for a moment that their interests and the boss's are mutual 
and go out on a strike. There is still no occasion to worry. The 
N.M.T.A. is prepared to meet the situation. Article XIII, Section 
3, of its constitution gives assurance to the member plant that 
strike-breakers will be furnished up to seven-tenths of the number 
of workers for which the member has been paying dues. "In the 
case of a strike in the shop of a member, the Association may, upon 
request of the member, assist in procuring workers to replace the 
strikers; but the number of workers so procured shall not exceed 
seven-tenths of the number of striking employees covered by the 
member's regular assessment for the current quarter . . ." 

Of course the member understands that for this protection he 
must be willing to bind himself to obey certain rules of the associa- 
tion. The N.M.T.A. is ready, willing, and able to swing into action 
on behalf of a stricken member, but he must agree to let them run 
the show. Article XIII, Sec. I, makes that clear: "In the conduct of 
labor disputes members must proceed in the manner which the 
Constitution and By-Laws prescribe, failing in which they shall 
forfeit all right to the financial or moral support of the Associa- 
tion . . ." 

Now what happens if a member calls upon the association to 
help fight a strike, and then either because he is lily-livered and 
can't stand seeing his workers attacked by the guards, or because 
he has come round to seeing that the strikers have just grievances, 
or because the strike is making him suffer heavy business losses, he 
decides to settle the strike? What happens? Can he meet with the 
men and end the dispute ? Not on your life. It's not up to him. It's 
for the N.M.T.A. to decide if, when, and how a strike in this mem- 
ber plant shall be terminated: "Article XIII, Sec. 7, Penalty for 
Settling Without Approval of Administrative Council. If, without the 
consent of the Administrative Council, a member shall settle a 
difference or strike, the defense of which has been assumed by the 
Association, such member shall repay to the Association all the 


moneys which the Association may have expended on account of 
having assumed defense of such difference or strike, and shall also 
be liable to suspension or expulsion." 

Does this seem a bit high handed? It isn't. It's a smart tactic. In 
fighting a war it's always best to have a unified command. The 
N.M.T.A. knows that in fighting for the employers against the 
workers, the safest and strongest procedure is a united front col- 
lective action on the part of the employers. The workers have also 
learned that collective action is best. That's why they organize into 
unions. But what the N.M.T.A. wants for its own side, it is not at 
all willing to grant to the other side. Mr. Sayre was very reluctant 
to admit this, but judge for yourself: 

SENATOR THOMAS. So that you have an organization which 
has all the possibilities of collective action on the part of the 
employers ? 

MR. SAYRE. Yes; I presume that is correct, in the preservation 
of the open shop. 

SENATOR THOMAS. So that you have certain machinery set 
up that you can bring unity of stand, unity of action, unity 
of opinion about certain definite things? 

MR. SAYRE. Yes; for the principle of the open shop that we 
stand for. 

SENATOR THOMAS. If you take the words of your constitution, 
do not they mean this, that "We want collective action for 
ourselves and we want to forestall collective action on the 
part of the employees?" 

MR. SAYRE. Well, that is not the policy of the association. 
We do not do that. 

SENATOR THOMAS. In spite of what it says here? 

MR. SAYRE. That is right. 

SENATOR THOMAS. I am right in implying that from the 
words, am I not? 


MR. SAYRE. Well, that would simply be an opinion. I do not 
think I would care to express an opinion on it. 

SENATOR THOMAS. Well, has it not worked that way? 

MR. SAYRE. No; it has not worked that way. 

SENATOR THOMAS. Haven't you been more interested in 
keeping the employers on a collective-action basis than seeing 
that the employees get on a collective-action basis? 

MR. SAYRE. Yes; in that respect that is correct. 

What infinite patience was required to get these witnesses to 
give to words their obvious meaning! Mr. Sayre, like the dick 
agency officials and labor-relations directors of the big corpora- 
tions, displayed amazing speed in spotting what labor was doing 
that his side didn't like, but he could seldom quite make the grade 
in discovering what his side was doing that labor didn't like. He 
didn't like to be helped either. And he certainly didn't enjoy Senator 
La Follette's and Senator Thomas's nasty habit of asking questions 
that would clarify some of his pretty speeches. 

For example, Mr. Sayre proclaims, "... I think, generally 
speaking, the employers throughout the country are willing at any 
time to deal with their employees, either individually or collec- 
tively. What many of them object to is to dealing with outside 

Now see what the questioning brought out in regard to that 
beautiful sentiment: 

SENATOR THOMAS. What do you mean by outside representa- 
tives ? 

MR. SAYRE. Well, I mean business agents of a union and men 
of that description, that are not employed by the company. 

SENATOR THOMAS. Would not your organization be an outside 
agency from the employees' standpoint? 

MR. SAYRE. I presume that is correct. 

SENATOR THOMAS. What if an employee organization should 
be set up and they should make the charge that they are against 


the closed shop theory in regard to the employers; would that 
not put your organization right out of existence? 

MR. SAYRE. It might, if the employers agreed to that. 

Commissioner Sayre got into other difficulties. Not only did he 
have to admit that his organization was just as much an "outside 
agency" as the business agents of a union were, but he had to 
admit further that the N.M.T.A. was opposed to its members 
making collective bargaining agreements. He had been stoutly 
maintaining that the association was not opposed to its members 
employing union workers, but that it was opposed to its members 
signing closed shop agreements with unions. Under Senator La 
Follette's questioning he had to concede that the N.M.T.A. was 
opposed to its members signing even collective bargaining agree- 
ments. This admission came hard, but it came. 

SENATOR LA FOLLETTE. In other words, when you say you 
are opposed to a closed shop, what you really mean, if I under- 
stand you, is that you are opposed to any collective bargaining 
whereby the majority of the employees are designated as rep- 
resentatives of all of the employees for the purpose of signing 
an agreement, which affects the working conditions, the hours, 
and the wages of all the employees in the plant; is that not a 
fair statement? 

MR. SAYRE. Well, we are opposed 

SENATOR LA FOLLETTE. (interrupting) No; I say, is that not a 
fair statement ? 

MR. SAYRE. I do not want to make a mistake on it. 

SENATOR LA FOLLETTE. I do not want you to make any mis- 

MR. SAYRE. That is the point. I want to be perfectly honest 
in the thing. As I said, we are opposed to the closed shop, 

SENATOR LA FOLLETTE. You have said that a good many 
times and I understand all about that, but I understood from 
your testimony that what you regarded as a closed shop was 


an agreement entered into between the employees, that no 
one in that shop could be employed who did not belong to a 
particular union. Is that correct? 

MR. SAYRE. That is correct. 

SENATOR LA FOLLETTE. All right. Now I am anxious to get 
your honest, straight-forward opinion ... of a different 
situation, not a closed shop in the sense that all employees 
have to belong to a particular union, but a shop in which the 
employer recognizes the right of a majority of his employees to 
represent all of the employees in the plant, regardless of 
whether they belong to a union or not, for the purpose of 
entering into a contractual relation between the employees 
and the employer affecting hours, wages, and working con- 
ditions, and other things of interest to the employees. 

MR. SAYRE. Well, we would probably say to that company 
that we felt that such an agreement was not justice to the mi- 
nority, and would suggest that when the time came for renew- 
ing the agreement again that he should take that into con- 
sideration. I do not think, I am quite sure, the association 
would expel a company for that. 

SENATOR LA FOLLETTE. . . . Do you know of any member 
of your association that has the kind of collective bargaining 
agreement that I described in my previous question ? 

MR. SAYRE. I do not recall offhand. 

SENATOR LA FOLLETTE. You would be very disturbed, would 
you not, if one or several members of your association began 
to enter into the kind of agreements that I have suggested ? 

MR. SAYRE. Yes; I would. 

SENATOR LA FOLLETTE. And you would bring it to the at- 
tention of the administrative executive council? 

MR. SAYRE: Yes; I would; yes, sir. 

SENATOR LA FOLLETTE. Do you not think the executive coun- 
cil would be disturbed about it ? 

MR. SAYRE. I think it would. 


SENATOR LA FOLLETTE. All right. I think we understand 
each other, Mr. Sayre. 

In the record there is an example of just such a case. Only Mr. 
Sayre did not need to refer the matter to the administrative ex- 
ecutive council. He prevented the signing of the agreement between 
the N.M.T.A. member and the union by smashing the union. 
Follow the sequence of steps: 

On April 25, 1934, the workers in the Morse Twist Drill & Ma- 
chine Co. of New Bedford, Mass, (member of the N.M.T.A.) held 
an election under the auspices of the National Labor Relations 
Board, to determine who should represent them in collective bar- 
gaining with the company. 

On April 27, 1934, the result of the election was communicated 
to the company by the N.L.R.B.: 

April 27, 1934 

New Bedford, Mass. 

Gentlemen: The results of the election held by this Board for 
the employees of the Morse Twist Drill & Machine Co., held 
in New Bedford on April 25, 1934, for the purpose of deter- 
mining who shall represent the employees in collective bar- 
gaining are as follows: 

American Federation of Labor representatives .... 272 

Local shop committee 10 

Miscellaneous 2 

Total ballots cast 284 

We enclose a copy of the President's Executive order of 
February I, 1934, as amended of February 23, 1934. 
Yours very truly, 

Executive Secretary. 

The National Labor Relations Board officials carried out their 
instructions according to law. They held and properly supervised 


an election in the Morse Twist Drill Co. plant. They notified the 
company of the result. The next step should have been the signing 
of a collective bargaining agreement between the company and 
the union which had been elected by the workers to represent them. 

But there is more than one way of skinning a cat. 

All was not lost, not by a long shot. The N.M.T.A. could fix 
things up. No one can sign an agreement with a union that doesn't 
exist. So 

On April 28, 1934, application for a post office box in New 
Bedford was filed by Mr. George Lichtenberger. He was assigned 
Box No. 152. 

Mr. George Lichtenberger was a spy Operative 187 in the 
employ of the N.M.T.A. He was sent in with orders to smash 
the union. He succeeded, according to the affidavit of a man who 
was in a position to know, Ferdinand Sylvia, A. F. of L. organizer: 

Both the Revere Brass and the Morse 'Twist Drill unions with 
which Lichtenberger was identified have disintegrated ... I 
believe that in both these cases the real destructive influence 
was the action and attitude of Lichtenberger, particularly in 
the Morse Twist Drill where I had organized 127 members 
with full initiation fees and with the prospects of a potential 
organization of more than 500 members and where we had 
immediate success in raising wages and in securing recognition 
for purposes of collective bargaining through a national labor 
board election. Because of his influential position in the local 
and as a delegate to the New Bedford Central Labor Union, 
Lichtenberger was able to demoralize the members and the 
prospective members of the Morse Twist Drill Local by dis- 
crediting the organizers and by his efforts within the or- 


Neat work, wasn't it? The N.M.T.A. officials were not boasting 
when they advised their own and prospective members that the 
association's "Private Detective Service" offered many advan- 


tages over the industrial service of the ordinary spy agencies. 
According to Mr. E. C. Davison, Mayor of Alexandria, and secre- 
tary-treasurer of the International Association of Machinists, the 
N.M.T.A. could be proud of the activities of its undercover men: 

MR. DAVISON. . . . In 1901 they became very active and 

began the process of placing in our organization undercover 

men, stool-pigeons, for the purpose of framing the officials 

of the organization, both local and international our trou- 

ibles were continuous. 

SENATOR LA FOLLETTE. What do you mean by "framing"? 

MR. DAVISON. By getting them into positions that are, I 
would say, unbearable; destroying their homes, if possible, by 
anonymous letters, many of which I have myself received in 
my earlier days, writing to our wives that we were familiar 
with other women, writing letters signing the names of women 
that would be sent to our homes, addressed to us, knowing full 
well that most of our wives take care of our mail at home . . . 

There's a tactic which even the dick agencies wouldn't stoop to. 

The N.M.T.A. spies know the advantage of becoming officials 
in the union. When James Matles, grand lodge representative of 
the International Association of Machinists, was shown a list of 
the undercover operatives of the N.M.T.A. and the places where 
they had worked, he recognized some of them as important union 
officials: "I see the name of Ernest Goetz, Operator 249, Otis 
Elevator, Yonkers, Worthington Pump, Ford Instrument Co., at 
which company he is employed now; he is a member of Lodge 295, 
Long Island City; he holds the office of trustee at the present time 
... I see the name further on of Arthur Brook, Operator 433, 
Silver & Pewter Manufacturers Association, New York, and later 
as general operator. He is at present a member of the executive 
board of Lodge 416 in Brooklyn ... I see here also one other 
important man. His name is A. W. Allten, Operative 479, the 
Wright Aeronautical Co., Paterson, N. J. This man is holding office 
now as secretary of the lodge and has all the records of every sinele 


member working in Wright's. He is president of the State con- 
ference of the International Association of Machinists, a conference 
representing 12 or 14 lodges in that state." 

Members of the N.M.T.A. are assured that their every request 
for aid in case of "trouble'* (union activity) will be given prompt 
consideration. In April 1935 the Sunbeam Electric Co. of Evans- 
ville needed help. The reason is given in a letter from the secretary 
of the St. Louis Branch of the association to the national secretary: 

... Of their [Sunbeam Electric Co.] employees who belong 
to this federal union, three are particularly active and per- 
nicious. The company would like to get rid of these three 
men and if you can suggest any way that they can accomplish 
this without laying themselves liable to a charge before the Regional 
Labor Board, they would appreciate it very much. All three 
of them are very careful to do their work in such a way that it 
will not be possible to discharge them on those grounds and 
their union activities are carried on outside the plant and in 
union meetings . . . Mr. Schroeder believes that the interests 
of the firm require their immediate dismissal. How can it be 

Did this employers' association, run by the high-minded Mr. 
Sayre, refuse indignantly to assist the Sunbeam Electric Co. vio- 
late the law? It did not. Did the N.M.T.A. write to the Sunbeam 
Electric Co. that its employees had a perfect right to do what they 
were doing? It did not. It came to the aid of its stricken member 
Operative 116 was assigned to the case. 

The N.M.T.A. is prepared to give to its members strike-breaking 
and "guard" service as well as spy service. In 1936 it had a "de- 
fense fund" of over $200,000 to use for strike-breaking purposes. 
(Incidentally, it paid no taxes on this war chest, because it is a "vol- 
untary association.") Any outfit that is in the strike-breaking 
business is of great interest to the munitions firms. Mr. Ailes, 
vice-president of the Lake Erie Chemical Co. recognized that fact. 
On May 28, 1936, he wrote to one of his agents: 


Dear Northcott: You will recall that I wrote to you several 
times about the National Metal Trades Association with 
headquarters in Chicago, tfbis outfit is a great potential source of 
business, and I think we have overlooked a bet in not getting 
better acquainted with them . . . 

They have a membership consisting of the most prominent 
metal-working concerns in the U. S. 

I did not know until recently that this concern furnished 
guards , strike-breakers^ and tbe like for industrial concerns be- 
longing to tbeir association. However, they do so, and dictate 
the defensive sources or materials that the members should 
buy . . . 

Mr. Ailes was not a moment too soon. For at the very moment he 
was writing his letter, a strike was in progress at the Black & Decker 
Electric Co. of Kent, Ohio. This was a member firm of the N.M.T.A. 
and Mr. Ailes succeeded in "getting better acquainted" just in the 
nick of time. On June 18, the association's "guards" put into use 
the Lake Erie Chemical Co.'s products. Here is the story from the 
sworn testimony of Mr. C. A. Gadd, business representative for 
the International Association of Machinists: 

SENATOR LA FOLLETTE. State the circumstances that led to 
the violence. 

MR. GADD. Two trucks drove up there at 6 o'clock in the 
morning and crashed through the gate, men jumped out of 
them with sawed-off shotguns and tear gas guns. 

SENATOR LA FOLLETTE. Approximately how many men 
were in the trucks ? Do you remember ? 

MR. GADD. Well there were forty-some. I was under the im- 
pression there were forty nine of them altogether. They started 
shooting tear gas and shooting with the shotguns. They had 
some of the pickets that were suffering from gas taken to the 
hospital. One picket was shot in the right leg, gassed, and some 
of the other pickets were slightly wounded. One, by the name 
of Gray, was shot in the face with some buckshot . . . 


SENATOR LA FOLLETTE. Were any women hurt? 

MR. GADD. Yes, sir. There was a Mrs. Broffman . . . She 
had a gas shell explode right at her feet. She is still suffering 
from the effects of it [7 months after the shooting I-AUTHOR] . . . 

SENATOR LA FOLLETTE. Were there munitions found in the 

MR. GADD. Yes, sir. 

SENATOR LA FOLLETTE. What kind of munitions? 

MR. GADD. There were five sawed-off shotguns, five tear gas 
guns, long range guns, one full case and one part of a case of 
long range tear gas shells; there was quite a quantity of small 
arms ammunition, shotgun shells, and there were about a 
bushel basket full of revolvers and automatic pistols. 

SENATOR LA FOLLETTE. In the course of your negotiations 
for the agreement which was entered into subsequent to the 
removal of the guards, did you have any discussion with Mr. 
Lamb about the hiring of the guards ? 

MR. GADD. After the agreement was signed he said he did not 
hire any guards, that they turned the settlement of the strike 
over to the agency. He did not name the agency at that time. 

SENATOR LA FOLLETTE. It has been developed in the testi- 
mony that it was the National Metal Trades Association. 

MR. GADD. That is right. 

Though Mr. Sayre explained at the beginning of his testimony 
that the purpose of the association was "to establish harmonious 
relations" between employers and employees, the complete record 
in no sense bears him out. As a matter of fact, when N.M.T.A. 
officials met with any employer who did try to establish peaceful 
relations with unionized workers, they did everything they could 
to change his point of view. Two cases from the record illustrate 
this point. 

The first concerns Mr. George E. Deming, vice president of the 


Philco Radio Co. of Philadelphia. Mr. Deming, it appears, did not 
stop with making pretty speeches about workers having the right 
to belong to unions of their own choosing, but he actually believed 
it and his company signed an agreement with the union. That, 
in itself, would have made him an object of scorn to N.M.T.A. 
officials. But that wasn't all. Mr. Deming happened to be the em- 
ployer-member of the mayor's labor committee and dared to stick 
to the position that other employers should sign agreements with 
the unions. That was more than Mr. L. A. Stringham, head of the 
N. Y. branch office of the N.M.T.A., could stand. He was in- 
dignant, and on March 8, 1936, wrote to Commissioner Sayre for 
advice. Part of that letter reads: "Deming is the best thing the 
A. F. of L. has in Philadelphia, and his constant agitation in favor 
of the A. F. of L. is adding strength to the organized labor move- 

" This man should be broken down. Can you suggest anything that 
we can do to offset his activities?' 1 

Four days later came the Commissioner's answer, short and to 
the point: 

Dear Mr. Stringham : The next time you see Mr. Keller I 
would suggest that you give him the benefit of your opinion 
regarding Mr. Deming's attitude on labor problems. 

That is Mr. Sayre's advice in answer to Stringham's request for a 
method of "breaking down" Mr. Deming, the employer-friend of 
labor. It doesn't make sense until you understand that one of 
Philco's chief customers was the Chrysler Corporation, that Walter 
Chrysler was a stockholder in the Philco Co., and that Mr. Keller 
was the President of the Chrysler Corporation. 

Get it? Mr. Deming, vice president of the Philco Co., dared to 
believe that labor had the right to organize and bargain collectively. 
He was to be "broken down" by having pressure brought to bear 
on him through Mr. Keller of Chrysler, one of his biggest customers. 

Commissioner Sayre evidently knew all the tricks of the game, 
didn't he? 


The second case is similar. A solicitor for an employers' open shop 
organization in Cleveland, tried to enroll Mr. Frank W. Caldwell, 
a dealer in Dodge cars there. Imagine his surprise and disgust at 
learning from Mr. Caldwell that he believed in collective bargain- 
ing, and that he had signed an agreement with his employees' 
union! The N.M.T.A. learned about Mr. Caldwell. Though it 
wasn't any of their business since Mr. Caldwell was not eligible for 
membership in the N.M.T.A.; nevertheless Mr. Sayre evidently 
thought Mr. CaldwelPs condition was serious, and he proposed a 
remedy. He took the trouble to write a letter to Mr. Keller telling 
him about the attitude toward labor of Mr. Caldwell, the Dodge 
dealer who sold cars made by the Chrysler Corporation. It was indeed 
fortunate for the Chrysler Corporation that Commissioner Sayre 
didn't spot many more pro-labor employers with Chrysler connec- 
tions, else President Keller would have had a full-time job just 
bringing pressure to bear where Sayre thought it was needed. 

If a small Dodge dealer could arouse Commissioner Sayre so 
much, just imagine how his heart must have sunk, when he learned 
that Gerard Swope, Chairman of the Board of the great General 
Electric Company, was making eyes at unions! The horrible news 
came from the faithful Stringham in a report on an interview with 
Mr. Hinds of the Crouse Hinds Company, makers of electric 

Mr. Hinds said that Mr. Crouse had evidently fallen for some 
of the talk he had heard coming from Girard Swope, of the Gen- 
eral Electric Company, who was attempting to eliminate from 
industry the National Association of Manufacturers, the Nation- 
al Founders Association, and N.M.T.A. [that must have taken 
Sayre's breath away!-AuTHOR] That at a meeting in New 
York of the N.E.M.A. a couple of weeks ago, Swope attacked 
the above three associations; said they were out of the picture 
now, and could not do anything since j-A [of the National In- 
dustrial Recovery Act] and the Labor Boards were instituted; 
that there was no need of them any more; that every one would 


have to go along with the President from now on, and follow 
out his policies, etc. Manufacturers and members of the 
N.E.M.A. who were also in the three associations referred to, 
would not have to pay any more dues, but go along with the 
President and save their money. 

Mr. Hinds agrees that Swope is a dangerous man for industry; 
that his wife, a former pal of Jane Adams of the Hull House, is 
active with him in their parlor pink activities. 

Later on in the evening, conferred with our Syracuse cor- 
respondent and he informed me that he had just received a 
letter from Schenectady which advised him of a meeting . . . 
held in the General Electric office building, attended by the 
district officers of the four lodges of the International Associa- 
tion of Machinists, Schenectady, and was presided over by 
Girard Swope and George Bowen of the I. A.M. 

Here again the record is clear. Mr. Swope's wife was a pal of 
Jane Adams mark him as "a parlor pink"; Mr. Swope believed 
in negotiating with trade unions mark him as "a dangerous man 
for industry." We don't know whether Commissioner Sayre tried 
his usual tactic of communicating with President Keller of the 
Chrysler Corporation in this instance; we do know from another 
letter in the record that he expected to "make good use of the in- 
formation" that Stringham had given him. 

To what fantastic lengths the imagination of an employers' 
group runs when it meets an industrialist who deals with the 
union of his employees, is beautifully illustrated from another 
Stringham-to-Sayre letter. It is dated January 2, 1935, and part of 
it reads: 

. . . Counsel for the manufacturers and associations, during 
their deliberations, woke to the fact that there was a leak 
among their own group and through an investigation it is said 
that Gerard Swope was not only informant for the other side of 
the fence but was keeping them thoroughly advised and alive to 
everything that went on in the manufacturers* meetings. 


A pretty spectacle! The major officials of one of the leading em- 
ployers' associations in the U. S. labelling Gerard Swope, head of 
the General Electric Co., an informant! Perhaps the explanation 
lies in the fact that they themselves are so used to the employment 
of spies that they suspect everybody else, particularly an em- 
ployer who so far forgets his position as to respect the rights of his 
employees to bargain collectively. 

Another organization of employers which deserves attention is 
the National Association of Manufacturers, which one of its officers 
has described as "the most powerful body of business men which 
has ever been organized in any land, or in any age." The N.A.M. has 
in the U. S. over five thousand active and associate members; it has 
as affiliates over thirty state and several hundred local manufactur- 
ers' organizations, as well as many national trade associations. 

Like the N.M.T.A., it states, as one of its purposes "the better- 
ment of the relations between employer and employee," but its 
program for fulfilling that aim is quite different. It is not, directly, 
a spy and strike-breaking agency. It concerns itself instead, with 
the relations between business and government, and centers much 
of its attention on legislation opposing those measures which 
threaten the power of business, and supporting (often helping to 
initiate) those measures which favor business. It concerns itself, 
too, with the shaping of public opinion in regard to industry. 

For that job it is extremely well equipped. It has a treasury large 
enough to enable its Public Relations Committee to make extensive 
use of every propaganda medium in the country. At the annual 
convention of the N.A.M. on December 8, 1936, the chairman of 
the committee, Mr. Harry A. Bullis, gave the following report of 
the widespread activities of his committee in carrying industry's 
message to every American home. 

<Tbe Press 
Industrial Press Service reaches 5300 weekly newspapers 

every week. 
Weekly cartoon service sent to 2000 weekly newspapers. 


"Uncle Abner Says" comic cartoon appearing in 309 daily 
papers with a total circulation of 2,000,000 readers. 

"You and Your Nation's Affairs" daily articles by well- 
known economists appearing in 260 newspapers with a total 
circulation of over 4,500,000. 

Factual bulletin monthly exposition of industry's viewpoint 
sent to every newspaper editor in the country. 

For foreign-born citizens weekly press service, translated 
into German, Hungarian, Polish, and Italian, printed in 
papers with a total circulation of almost 2,500,000. 

Nation-wide advertising 6 full page ads about the "Ameri- 
can System," of which over 500 newspapers have carried one 
or more. 

The Radio 

"The American Family Robinson" program heard from 
coast to coast over 222 radio stations once a week, and over 
176 stations twice a week. 

Foreign language 1 188 programs in 6 languages over 79 radio 

The Movies 

Two lo-minute films for general distribution, seen by over 
2,000,000 people. 

Public Meetings 

70 meetings featuring 8 professional speakers. 

Employee Information Service 

Leaflets a series of 25 distributed to over 1 1,000,000 workers. 
Posters over 300,000 of a series of 24 for bulletin boards in 

plants throughout the country. 
Films 10 sound slide films for showing in plants. 

Outdoor advertising 

60,000 billboard ads scheduled for 1937. 



"You and Industry Library" over 1,000,000 copies of a 
series of seven pamphlets distributed to libraries, colleges, 
business men, lawyers, and educators. 

Mr. Bullis admitted that when he himself contemplated the scope 
of the N.A.M. public relations program, it took his breath away. 
He told the convention, "I am always amazed at its completeness 
and the way in which it reaches into every section of the country 
and all strata of society." 

Of the truth of that statement there can be no doubt. 

Both the N.M.T.A. and the N.A.M. are big well known employ- 
ers' organizations with a fairly open membership. There is another 
type of combination of employers which is small, more or less 
secretive, with restricted membership. An outstanding example of 
such a group is the "special conference committee," which meets 
once a month in the office of its secretary, Mr. E. S. Cowdrick, on 
the 24th floor of Radio City. The personnel men of a group of select 
important corporations make up this committee. The corporations 
are world-famous: General Motors, Standard Oil Co. of New Jersey, 
U. S. Rubber Co., U. S. Steel, Bethlehem Steel, International 
Harvester, A. T. & T., Goodyear Tire & Rubber, Irving Trust Co., 
Du Pont Co., General Electric, and Westinghouse. No more. Each 
corporation, if not the greatest in its field, is certainly one of the 

Several members of the group were on the stand before the La 
Follette committee. They testified that the principal order of busi- 
ness at the monthly meetings was a presentation by each member 
of a resume of business conditions of his company and of the labor 
situation; legislation such as J-A of N.I.R.A. and the Social Security 
Act was also discussed. Minutes of each meeting were kept and sent 
to the members of the committee, but the three General Motors 
witnesses who testified said that they had destroyed their copies. 
The questioning did bring out, however, that this conference com- 
mittee, while presumably merely a discussion group, became, in 


effect, a common policy-making group; i.e., in the pooling of com- 
mon experiences on labor-relations, the successful technique of 
one firm could be adopted by the others. This was true of 
company unions every corporation represented bad a company 

Similarly, one member might report on the successful method his 
company used to put over salary reductions, and the other members 
would probably try to institute the same procedure in their plants. 
Mr. Hale of General Motors told how impressed he had been at 
hearing Joe Larkin, Bethlehem Steel Committee member, describe 
a clever method of bringing strong union men into line: 

I think it was in connection with one of the subsidiaries of 
Bethlehem Steel, if I remember; it was the Fall River Ship- 
building Co. where they had several very antagonistic men 
elected to the works council, very strong union men, you might 
say, and inclined to be we might use the term broadly 
radical in their views, and the point was brought out there that 
when they got them into the picture and these men had an op- 
portunity, through that medium, to see some of the company's 
problems, how they were going at things, that they became sup- 
porters for the company's policies. I remember that particular 

This kind of learning from the other fellow's experience is usual 
we all do it. It was to be expected that these labor-relations 
directors of different large corporations, faced with the same prob- 
lems, would join together to discuss those problems and their solu- 
tion. (Look at a Goodyear letter to Mr. Cowdrick, Appendix E, 
for an example of how full the members' reports to the committee 
were.) Similarly, it was to be expected that a group of open shop 
employers, desirous of keeping unionism out of their plants, would 
join together in an organization like the N.M.T.A.; nor need anyone 
be surprised that manufacturers the country over, hoping to present 
a united front on legislative and labor matters, would join together 
in a powerful propaganda organization like the N.A.M. The fact 


that employers organize was not a surprise to Adam Smith way 
back in 1776. It should not be a surprise to us. 

Employers are staunch believers in organization for them- 
selves. They not only believe in it they practice it. Remember 
that, the next time you read about the fight they wage against 
trade unions, the organizations of the workers. 

VII. "The American Way 

NOW LET'S STOP to look at the picture. 

Workers in plants throughout the United States want to form 
unions and bargain collectively. They want to organize. Industrial- 
ists in plants throughout the United States also want to organize. 
They do. Nobody stops them. But these same industrialists are 
opposed to the efforts of their workers to organize and bargain col- 
lectively. The industrialists do not oppose unionization in word, 
but they do in deed. Spies are hired by the industrialists to help 
them in their fight against trade unions. 

What is a spy? Let us turn to the Oxford Dictionary, "spy a 
person employed in time of war to obtain secret information 
regarding the enemy." Spy is a war term. And labor spies 
are part of the industrial war. Understand, the opponents 
in this war are not the workers on the one side and the 
detective agencies on the other. Not at all. The detective agencies 
are the tools of the employers. They are paid by the employers. 
They would play no part in the war unless they were hired to do so. 
The line-up in this war is employers vs. workers, Capital vs. Labor. 

Richard Frankensteen, on the stand before the La Follette com- 
mittee, made the point that the people to blame for the spy system 
were not the spies, but the employers who hired them: "I would 
like to make this observation. I at one time listened in on a trial 
before Judge Moinet, a Federal judge in Detroit, and he had on 
trial a narcotic salesman, and he pointed out this man was not a 
dope-taker, and he said to this man, 'I am going to give you the 
highest penalty that the law allows me to give, because I think you 
are much worse than the man who takes dope, than the average addict, 
because he is a weak man.' 



"I think men who pose as decent citizens, men like Weckler 
[vice-president of De Soto Motor Corporation, Chrysler subsidiary 
-AUTHOR] and K. T. Keller, men of that type are in the same category 
as that dope salesman ... I want to say that the type of men that 
are hired for these spy jobs are the lowest type of criminals that you 
can find. Many of them have criminal records a mile long, and yet 
the same corporations, Mr. Keller , Mr. Weckler , and the rest of 'them , 
hire these men and still walk around as decent citizens, and I say 
they are not." 

Of course the dick agencies are not free from blame. We have 
seen that in carrying out their business of union-smashing, they 
employ revolting methods, they lack moral scruples, they break 
the law. Nevertheless, since they are merely hired agents, it is cor- 
rect to say that the detective agencies are not the real force opposed 
to the workers. Facing the workers in their struggle for unioniza- 
tion and collective bargaining are the industrialists who hire the 
agencies to carry on their work of destruction and pay them hand- 
somely for it. 

The workers' struggle for unionization is a hard one. The employ- 
ing class is a formidable enemy. Then why do workers persist in 
the fight? Chief Justice Hughes of the United States Supreme Court 
gave the answer in the majority decision in the Jones-Laughlin 
Labor Board Case: "Long ago we stated the reason for labor or- 
ganizations. We said that they were organized out of the necessities 
of the situation; that a single employee was helpless in dealing with 
an employer; that he was dependent ordinarily on his daily wage 
for the maintenance of himself and family; that if the employer 
refused to pay him the wages that he thought fair, he was neverthe- 
less unable to leave the employ and resist arbitrary and unfair 
treatment; that union was essential to give laborers opportunity to 
deal on an equality with their employer." 

This is not the first time that the United States Supreme Court 
has held that workers standing alone are not on equal terms with 
employers, that only by organizing into unions can they expect to 


"deal on an equality with their employer." As long ago as 1898 the 
Court held that "the proprietors of these establishments and their 
operatives [workers] do not stand upon an equality . . . the pro- 
prietors lay down the rules and the laborers are practically con- 
strained to obey them." 

One group wants to sell labor, the other group wants to buy 
labor. But according to the Supreme Court and to every student of 
the subject, the two groups are not equal in strength. The laborers 
organize into unions so they can have a voice, with the proprietors, 
in "laying down the rules." That's the purpose of unionization, of 
collective bargaining. The men who join labor unions are the work- 
ers who have learned from experience, and from the Supreme Court 
and other official government bodies, that only in union can they 
obtain the strength they need to bargain on equal terms with their 

Any one reading the sugared statements of our captains of in- 
dustry would never for a moment believe that they are opposed to 
this fundamental first step of their workers. No dispute between 
capital and labor is ever complete without a pretty speech by the 
employer that he is not at all opposed to unionization or collective 
bargaining. That's what he says. What he does is quite another 
matter. This is an old story. It was true many years ago. It was true 
in 1912. It is true today. 

The 1912 experience is illuminating. In that year Congress passed 
an act calling for the creation of a Commission on Industrial Rela- 
tions, which was to inquire into the existing relations between em- 
ployers and employees. The Commission consisted of nine members, 
three representing the employers, three the employees, and three 
the general public. The Commission held public hearings for about 
six months; it heard witnesses affiliated with employers, with labor, 
and with neither. Part of its report reads: "It is very significant 
that out of 230 representatives of the interests of employers, chosen 
largely on the recommendations of their own organizations, less 
than half a dozen have denied the propriety of collective action on 

I 4 2 


the part of employees. A considerable number of 'these witnesses have, 
however, testified that they denied in practice what they admitted to be 
right in theory" 

This denial of the workers' right to organize still goes on. It is the 
primary cause of labor disputes. Contrary to general opinion, the 
fact is that in most of the strikes that are called in the U. S., the 
major issue is not wages and hours, but matters pertaining to union 
organization and recognition. The latest figures from the U. S. De- 
partment of Labor show that this is true: 








All issues 


Per cent 
of total 


Per cent 


Per cent 







Wages and hours 
Union organization .... 







14. c 





Notice that in every case, the issue of union organization and 
recognition was the primary cause of strikes; and that in 1936, 
this was the issue involved in more than half the disputes. 

The blame for much of our industrial warfare thus lies at the 
doorstep of those employers who refuse to allow workers to unionize 
and have representatives of their own choosing. In the Jones- 
Laughlin decision the Supreme Court said this in so many words: 
"Experience has abundantly demonstrated that the recognition of 
the right of employees to self-organization and to have representa- 
tives of their own choosing for the purpose of collective bargaining 
is often an essential condition of industrial peace. Refusal to confer 
and negotiate has been one of the most prolific causes of strife. This is 
such an outstanding fact in the history of labor disturbances that 


it is a proper subject of judicial notice and requires no citation of 

There was a time when employers were within their legal rights 
in refusing "to confer and negotiate." But today that is no longer 
true. The fact that some industrialists still continue to defy the 
law, places squarely on their shoulders the responsibility for the 
bloodshed resulting from industrial strife. It is a discouraging fact 
that so many of them leaders in their communities continue 
to carry that responsibility. They are quick to shout "agitators" 
as soon as a strike breaks out, yet it is they who are the real agita- 
tors, they who are the true disturbers of the peace. 

When The New Tork Herald Tribune in its lead editorial on 
February 10, 1937 said, "It is now recognized by custom and law 
in this country that labor has the right to organize, to bargain col- 
lectively through representatives of its own choosing and to strike", 
it was only half correct. // is now recognized by law the National 
Labor Relations Act, passed by Congress in July 1935, gave labor 
those rights. But it is not now recognized by custom no employer 
of labor spies recognizes it. The policies of Congress as declared in 
the Wagner Act are completely defeated by industrial espionage. 
Those industrialists who have hired labor spies have violated the 

What are we to think of these revelations of unfair and illegal 
industrial practices on the part of employers? Mr. Walter Lipp- 
mann, in his column in The Herald Tribune, March 6, 1937, tells us 
what to think: "As long as big business stood intrenched behind its 
Pinkertons and its dogmas, it was in fact imbued with the psychol- 
ogy of class war, however much it might deplore the idea when 
openly preached from a soapbox. The refusal to recognize the unions 
and to negotiate with them could not by any possibility be de- 
scribed as an attitude of peace; among nations the equivalent is a 
refusal to have diplomatic relations, an act just short of war which 
generally leads to war." 

Thus put on our guard by Mr. Lippmann we need not be taken in 


by such statements as the following made by Mr. Alfred P. Sloan, 
Jr. on July 26, 1934: "The Management of General Motors holds 
that there is no real conflict of interests between employers and 
employees . . . Enlightened employers and enlightened employees 
realize that they have a mutuality of interests such as to dictate the 
wisdom of maintaining the highest degree of cooperation and har- 
monious relations." 

We have learned that these are merely words without substance. 
Behind them is the reality of the class war, as exemplified in the 
use of Pinkerton spies. 

Similarly, when the sit-down strikers are in possession of the 
Chrysler plant, and Mr. K. T. Keller, president of the Chrysler 
Corporation, runs a full-page statement in the newspapers of the 
country in which the following assertion is made: "This company 
has conducted its industrial relations by and in accordance with 
general acknowledged standards of fairness and equity" - we are 
not surprised. We are now aware that sugarcoated sweet phrases 
covering the bitter pill of class war have long been prescribed for 
labor by capital. We leave to others the impossible task of reconcil- 
ing the employment of Corporations Auxiliary spies with "stand- 
ards of fairness and equity." 

Occasionally by accident, we are given the unusual opportunity 
to get behind the scenes as one of the employing class talks to 
another. Then the difference between their silken phrases offered 
for public consumption and their real attitude becomes clear. A 
letter to Commissioner Sayre of the N.M.T.A. throws some light 
on the "private thinking of these representatives of the powerful 
metal trades manufacturers: 


July 7, 1936 
Dear Homer: 

. . . What do you think of the advisability of having an 
operative whose business it would be to circulate generally and 


keep us informed in regard to the activities of our friend the 
enemy? . . . 


SENATOR LA FOLLETTE. What is your interpretation, Mr. 
Sayre, of the phrase " the activities of our friend the enemy " 
in this letter ? 

MR. SAYRE. Well, I assume that Mr. Ennis refers to the ac- 
tivities of the labor organizations which are attempting to 
unionize the plants of the members of the association . . . 

There we have it. The "enemy" is the labor organizations which 
attempt to unionize. That the law gives these organizations that 
right is for the N.M.T.A. beside the point. 

That's frankness in private. Frankness in the open is indeed 
rare; so we are deeply indebted to Mr. Hal Smith, counsel of the 
Michigan Manufacturers' Association, who seems to express the 
real point of view of the employers' group. "We know of no reason 
why an employer in his plant should not have the right to employ a 
detective. We see no reflection in any way in the employment of 
detectives. 'Detective' and 'spy' are two names that are used in a 
derogatory sense, but even a spy has a necessary place in time of war, 
and it is not always that they are to be condemned." 

This spokesman for the manufacturers leaves us no choice. 
We realize, from his statement, that Mr. Lippmann and the 
"soapbox preachers" are right employers believe in and wage 
class war. 

It is waged in a number of ways. Spying is only one weapon in 
the class war. When that fails, when the unions continue to enroll 
members in spite of the work of stool-pigeons, then open violence is 

The Ford Motor Company recently provided a perfect illustra- 
tion. There was, as always, the usual statement that the men may 
join the union if they so desire: 


Ford Says His Men 
May "Join Anything' 9 

They Are "Free," He Declares, but 

Would Be "Foolish" to Sign 

Up in Labor Union 

DETROIT, April 13 (AP). Henry Ford declared today 
that his employees were "free to join anything they want 

"They have always been free to join any church, any 
lodge or any union they want to," he said in his first inter- 
view after the Supreme Court decision upholding the Wag- 
ner Labor Relations Act. 

"Of course I think they are foolish if they join any union. 
They will lose their liberty and all they will get is the right 
of paying dues to somebody." 

Mr. Ford here makes the flat assertion that his men "have al- 
ways been free to join any union they want to." That statement is 
simply not true. Ford employees have never been free to join a 
union. The spy system in the Ford plant has long been notorious. 
The Ford Company does not hire detective agencies it has its 
own elaborate spy system under the direction of Mr. Harry H. 
Bennett. (In this respect it is not alone many companies have 
their own service.) The complete story of how Mr. Bennett's "serv- 
ice men" operate has never been told, but enough is known to give 
the lie to Henry Ford's statement. In December, 1934, before the 
President's joint NRA-Labor Department inquiry, the testimony of 
the attorney for the Mechanics' Educational Society of America 
was taken. Here is The New Tork 'Times account of that testimony: 
"Mr. Sugar said that the Ford Motor Company's 'service' men 


were in the habit of looking through the employes* lunch boxes and 
clothes in the lockers to find evidence of trade union literature. 

"According to Mr. Sugar, motion pictures were made of a demon- 
stration of automobile employes by the Ford Company, the films 
were developed and examined and those found to have been Ford 
workers were discharged. He promised to furnish the commission 
with the names of those discharged." 

How can Mr. Ford's and Mr. Sugar's statements be reconciled? 
They cannot. One of them is trying to pull a fast one. Which one? 
Up until May 26, 1937, either case might have been hard to prove 
definitely. But on that day something happened which makes it 
easy to judge. 

The United Automobile Workers, having signed agreements with 
both General Motors and the Chrysler Corporation, next turned 
their attention to the Ford Motor Company. The union organizers 
asked for and received permission from the Dearborn City Council 
to distribute union leaflets to Ford workers on May 26. Now look at 
the pictures (facing page 106) for what happened. (Also see 
Frankensteen's own account, Appendix F.) 

The captions are taken from 'The New York World-Telegram of 
May 27. Evidently the editor of this paper did not believe Harry 
Bennett's explanation of who did the slugging. Here is Bennett's 
statement: "The affair was deliberately provoked by union officials 
... I know definitely no Ford service men or plant police were in- 
volved in any way in the fight. As a matter of fact, the service men 
had issued instructions the union people could come and distribute 
their pamphlets at the gate so long as they didn't interfere with 
employes at work. 

"The union men were beaten by regular Ford employes who were 
on their way to work on the afternoon shift . . ." 

The World-telegram caption writer was not taken in by Bennett's 
statement. He didn't believe that the sluggers were "regular Ford 
employes." He labels them what they were: "Ford's service men." 
Look at the next picture and you can make your own guess. See the 
handcuffs sticking out of the back pocket of the "worker" at the 


left? Ever hear of an auto worker who needed handcuffs on his job? 
The camera doesn't lie. The service men know that which ex- 
plains why "the only victims of the fighting besides the unionists 
were several of the photographers at the scene." 

Violence. Union organizers suddenly beaten, kicked, and driven 
away. That is the Ford Motor Company's law-breaking answer to 
the U.A.W.A.'s attempt to unionize Ford workers. (IRONICAL NOTE: 
On page 3 of The New Tork Times of May 27, 1937, just below the 
picture showing the beating of Frankensteen, is a story whose head- 
line reads: "Ford Assets Rose to $717,359,366 in 1936; Profit and 
Loss Account Gained $ 19,6 8 9,021.") 

Four days after the beating at Ford's, on May 30, in Chicago, 
more violence. Another manifestation of the class war. Ten killed, 
forty injured. Why? Because the Republic Steel Company, continu- 
ing its traditional anti-union policy, chose not to sign an agreement 
with the Steel Workers Organizing Committee of the C.I.O. A 
strike resulted. On Memorial Day, about a thousand union sym- 
pathizers, including many women and children, marched in peaceful 
fashion toward the Republic Steel Company plant. They were un- 
armed. They were several blocks from the gate of the plant, not even 
on company grounds, when the Chicago police in their capacity as 
"protectors of the company's property," fired, threw tear gas 
bombs, then attacked with clubs. The death list is evidence of where 
the responsibility for the slaughter lies. Not a single policeman was 

Joseph Hickey, one of the wounded, tells what happened: "I 
went to the meeting and they decided to make a picket line at the 
front of the company. I went out with the rest of them and started 
to walk over to the plant. I was about 100 yards behind the head of 
the line when the uproar began. They were like trapped rats, panic- 
stricken, terrified. 

"I saw a woman fall as she was being clubbed by the policemen. 
She was bleeding and looked like she was dying. I ran over to help 
her and leaned down to pick her up, when the police hit me over the 
head. I was out after that." 


So horrible was the massacre that Paramount News, which filmed 
the entire episode, found it advisable not to release the film for pub- 
lic showings. The editor explained his action with these words: 
"Our pictures depict a tense and nerve- wracking episode, which, in 
certain sections of the country, might very well incite local riot and 
perhaps riotous demonstrations in theaters, leading to further 
casualties." This news editor was not faint-hearted. He knew his 
picture. So brutal a slaughter of innocent men, women, and children 
has seldom before occurred in the United States and the film 
shows it clearly. Read, in Appendix G, the story the suppressed 
film tells, written by a person who saw it. 

Workers beaten, sent to the hospital, killed. This is the price of 
the Republic Steel Company's refusal to sign a contract with the 
union. The Carnegie-Illinois Steel Company has signed such a con- 
tract and there is peace. The Jones and Laughlin Steel Corpora- 
tion agreed to an election under the supervision of the N.L.R.B.; 
the employees voted 17,412 for the C.I.O. union, 7,207 against; 
Jones-Laughlin signed with the union and there is peace. Over 
130 steel companies have signed contracts with the union and 
there is peace. But Republic Steel refuses to sign and blood is 

The violence in this case was police violence. That often happens 
as a result of industrialists' unwillingness to deal with unions. And 
direct violence on the part of thugs hired by the employers also hap- 
pens often. The horrible condition of affairs in Harlan County, 
Kentucky, which has given that place the well-deserved name of 
"Bloody Harlan," is known to all. Union meetings broken up by 
riflemen; the murder of the son of a preacher who was a union or- 
ganizer; the frequent beatings of union organizers; the dynamiting 
of their cars and hotel rooms; the incarceration of union members in 
an iron cage under a porch belonging to a coal firm; Harlan "jus- 
tice" as portrayed by the judge who phoned a coal operator to ask 
him how to dispose of the case of an arrested union organizer all 
this and more has been disclosed by the La Follette committee. 
But we have learned to expect anything to happen in the feudal 


domain which is Bloody Harlan. It's almost as if Harlan County 
were not a part of the United States. But it is and it has its 
counterpart in other sections. 

In 1936 the employees of the Pekin Distilling Company in Pekin, 
Illinois, complained to the Labor Relations Board of espionage in 
the plant. The Board's investigation was hamstrung at every turn 
by court action on the part of the company. The men went out on 
strike. The situation was tense. This was the moment chosen by the 
Peoria Manufacturers' Association to deputize two gunmen with 
criminal records, as strike-breakers. One of the thugs, Charles Sum- 
mers, was questioned by the state superintendent of supervision of 
parolees. Here is the testimony from the record: 

Question: Were you ever requested, or was the suggestion 
made to you, or were you ordered, to bump off, knock off, get 
rid of, or put in the hospital, a fellow by the name of Kinsella 
and a fellow by the name of Wilkie? 

Answer: Yes. Not Wilkie, but Kinsella. 

j^J. Charlie, will you give the details in reference to the best of 
your recollection? 

A. Well, in short, this Kinsella was causing a lot of trouble 
for the Manufacturers' Association, and Mr. Roark [secretary 
of the Association] thought it would be a good idea to put him in 
the hospital for a while. He offered me $50, $25 of which he ad- 
vanced. That's all there was to it . . . 

The scene shifts from Illinois to Alabama. Mr. Elaine Owen is ac- 
tive in union work there. Mr. Le May, assistant to the president of 
the Tennessee Coal Iron and Railroad Company, doesn't like 
unions. A Pinkerton solicitor tries to get some business from him. 
Here is part of the letter the Pink wrote to Littlejohn of the Atlanta 
office: "On my last two trips through Birmingham I have called 
upon Mr. E. D. Le May, assistant to the President of the Tennessee 
Coal and Iron Railroad . . . Mr. Le May confidently told me that 
in the case of one very active Communist, Elaine Owens, they pri- 


vately bad him taken on a week's 'fishing trip ' and worked on him sev- 
eral times a day during that period, with the result that he left Bir- 
mingham permanently." 

Understand, these quotations are not from the diary of a master 
racketeer. These orders to "put him in the hospital," and "work on 
him," are issued by respectable employers. What it means to be a 
union organizer in conflict with the T. C. & I., what it means to be 
taken on a "fishing trip," has been described by Elaine Owen. Read 
his account in Appendix H. 

Sometimes getting rid of a troublesome union man is the com- 
pany's idea, occasionally it springs from the spy. One N.M.T.A. 
operative's report contains the significant words, "If Newbold and 
one or two others could be eliminated, there would be no trouble." 
A Pinkerton spy reports, "I believe if Shaw, Baum, and Scholle 
were eliminated and the company talked to the people that main- 
tain the picket line, an agreement could be reached." Remember, 
again, these reports are sent, not to a Dutch Schultz or an Al 
Capone, but to the heads of big manufacturing firms. 

Such reports would not be sent if those industrialists were not in a 
mood to receive them. Unfortunately they are. The beatings and 
killings of active union men do not come as a surprise to them. 
Where these industrialists do not themselves engineer the beatings, 
they are at least aware that they are going to happen. Clifton Slus- 
ser, vice-president and factory manager of Goodyear Tire and 
Rubber Co., is on the stand, talking about the Gadsden, Alabama 
plant of Goodyear: 

SENATOR LA FOLLETTE. Do you recall that . . . you offered 
to bet Mr. Pollard or Mr. Ricketts $100 that no union man 
could organize the employees in the Gadsden plant of Good- 

MR. SLUSSER. I do not recall having made him an offer of a 
bet, but I did make the statement that they could not go to 
Gadsden, in my opinion, or go south of the Mason-Dixon line 


and do and say these things that they were doing and saying in 

SENATOR LA FOLLETTE. Do you recall stating words to this ef- 
fect, that if an organizer did get off the train he would have to 
come back on a stretcher ? 

MR. SLUSSER. No; I told him he might get his head knocked 
off. (Laughter) 

Mr. Sherman H. Dalrymple, union organizer who attempted to 
address a meeting of Goodyear employees in Gadsden, Alabama, 
followed Mr. Slusser on the witness stand. His testimony that the 
meeting was broken up by Goodyear's "flying squadron," and that 
"his head was knocked off" to the extent that he was sent to the 
hospital suffering from concussion of the brain, proved how great a 
prophet Slusser was. 

Mr. C. D. Lesley, a Goodyear employee for nine years, testified 
that the "flying squadron" was given military training for a period 
of one month. Read his testimony. The Goodyear Co. anticipated 
that a strike might develop. A strike for this great company meant 
a war, nothing less: 

SENATOR LA FOLLETTE. How often did the men go to the hall 
for this training? 

MR. LESLEY. Oh, 3 to 4 days a week, depending on just how 
serious they thought this thing was that they expected to 

SENATOR LA FOLLETTE. And how long did the training period 

MR. LESLEY. I think I am safe in saying close to a month. 

SENATOR LA FOLLETTE. And each one of these sessions of 
drill that you had, how long would they last on the average ? 

MR. LESLEY. About two hours. 

SENATOR LA FOLLETTE. Did you receive any training as to the 
use of any kind of weapons, gas weapons or others ? 


MR. LESLEY. There were general instructions given to the en- 
tire group in the use of a gas gun and the position of a man us- 
ing this gun in the various formations. 

SENATOR LA FOLLETTE. What sort of particular formations 
did you practice that had to do with riots? 

MR. LESLEY. Well, the one that they stuck to very close was 
what is known as the wedge formation. 

SENATOR LA FOLLETTE. Describe that. 

MR. LESLEY. Well, the formation is made by a group of men, 
and when they are in their position the formation, or it appears 
as though it is a wedge with a spearpoint and so forth, and the 
leading man is supposed to be the man to lead into the group, 
and the others are to protect him. The position of this gas man 
is in the center, and it is for his protection presumably. 

SENATOR LA FOLLETTE. Would you describe this as an offen- 
sive or defensive formation ? 

MR. LESLEY. Offensive; absolutely. 

Keep that "offensive formation" in mind next time you read 
about company guards killing picketers, "in defense of company 

Mr. Lesley was not telling a fairy tale. This military training of 
Goodyear workers happened. It happened at the other rubber 
plants too. One of the experts in charge, Joseph J. Johnston, Colonel 
of Cavalry of the Ohio National Guard Reserve, had done a good 
job. He felt that in applying for a similar position with other firms 
he could give the Akron rubber companies as reference. He writes to 
Mr. C. E. Mitchell, Industrial Relations Department, General 
Motors Corporation, Detroit, Michigan: 

My Dear Sir: During the threatened labor trouble in the 
rubber industry in Akron, I was employed by the Akron rubber 
companies to organize and train the plant protection units and 


take general charge of plant defense. By getting to work well in 
advance of the threatened trouble, I believe we were able to 
prevent the strike. / had fully equipped and trained 1500 men. 
I am writing to you to inquire if you would be in need of 
service along this line. I can refer you to Mr. Herbert Cook in 
charge of factory safety and defense, the B. F. Goodrich 
Company, Akron, and Mr. William Reese of the same capacity 
at the Firestone Rubber Company, Akron, or any of the offi- 
cials of these companies that you would care to write to. I 
might also refer you to Sheriff James Flower of Summit 
County, Akron, whose force I assisted in training. 

Now we don't know whether or not Colonel Johnston got the job 
with General Motors. But we do know that if he did get it, and if he 
was sent to Flint to train Chevrolet or Buick workers, he found all 
the equipment he needed waiting for him. P. H. Kilean, Lake Erie 
Chemical Company agent, wrote to Mr. Ailes on September 30, 

Ship to James V. Mills, chief of police, city of Flint, Michi- 
gan the following: Ten no. 16 gun clubs and ten dozen (120) no. 
i6-A shells for same . . . Do not bill the city of Flint for this 
material. Instead send the bill to the Manufacturers Associa- 
tion of Flint, 901 Industrial Bank Building. Mail it for the 
attention of James Farber, manager. Mr. Farber is the one who 
telephoned me this order this morning. 

For your own information only, / have reason to believe this 
material is for tbe Chevrolet Motor Company; but they do not 
want it advertised or generally known that they are the 

Several months later, Mr. Kilean comes through again with an 
order, this time for Buick. Same secrecy to be observed: 

Dear Mr. Ailes: For your records, please be advised that I 
sold to the Buick Motor Company, Flint, Michigan, two long 


range gas guns, single action, of the hammer-hinged type, at 
$40 each, and 1 2 long range tear gas charges for these guns, at 
$90 a dozen, or a total of $170. 

The Buick wanted this material delivered personally to their 
plant protection department, to circumvent the receiving de- 
partment, so I took it up myself Wednesday. 

Now all this is particularly interesting in the light of a request for 
tear gas made to Lake Erie by the other side in the class war. What 
happens if a union wants to arm itself in a manner similar to that of 
Chevrolet, Buick, and other industrial firms? Will the Lake Erie, 
like the armament industry, sell to both sides? It will not. The class 
war is evidently different from ordinary wars. Witness this letter 
dated May 13, 1936, from Mr. Ailes to the International Brother- 
hood, Chauffeurs and Helpers of Bridgeport, Connecticut: 

Gentlemen: We are restricting tbe sale of our tear gas weapons 
to law-enforcement agencies^ and therefore are not in a position 
to quote, in answer to your letter of May loth. We do not sell 
through dealers . . . 

A. S. Ailes, Vice President 

That Mr. Ailes was not telling the truth in the italicized sentence 
above, you have already seen from the sale to Chevrolet and Buick. 
On the stand, he testified that thirty to thirty-five percent of Lake 
Erie's sales went to individuals or corporations; Mr. Engelhart, sales 
manager of the Manville Manufacturing Co., testified that fifty 
percent of his company's sales were industrial. 

The map below, drawn by the La Follette committee, shows that 
preparing for violent industrial war is not restricted to a few plants 
it seems to be part of the pattern of American industry, like 

Industrialists love to make speeches about "The American 
Way." Billboards all over our country are plastered with those 

i 5 6 



familiar words "The American Way." In Europe there is also a 
class war. Yet a map like the one above, before the advent of the 
Nazis, could not have been understood by a European. And labor 
spying by hired detective agencies is also unknown there. It is com- 
pletely an American phenomenon. Is this what our industrialists 
mean by "The American Way"? 

VIII. What Is To Be Done? 

THE MAJOR PURPOSE of industrial espionage is union-pre- 
vention and union-smashing. This is a violation of the laws of our 
country. Spying defeats the policy of Congress, declared in the Wag- 
ner Act, that labor should have the right to organize. 

What is to be done? 

Employers who want to obey the law will know what to do. 
They must give up the practice of hiring spy agencies. This does 
not mean that they are to replace hired spies with their own plant 
spies. No. They must not interfere in any way with the efforts of 
their employees to organize, to join unions. 

Employees should do immediately what the law gives them a 
right to do organize. They should join trade unions. It is all to 
the good that the Wagner Act is on the statute books; that Wis- 
consin and Indiana have laws requiring the registration of opera- 
tives. Workers should demand the enforcement of these laws and 
the passage of other laws against the use of spy agencies. Yet that 
is not enough. Workers must not rely on legislation alone to make 
it impossible for law-breaking employers to deprive them of their 
rights. The way to win for all time the right to join trade unions 
is to exercise that right, now. Legislation helps, but without the 
organized might of the united workers behind them, law makers 
can do very little. The only way for workers to advance their 
own interests is by building up and strengthening their own or- 
ganization the trade union. 

But how is that possible so long as employers continue to plant 
spies in unions to disrupt worker organization? It is possible. It can 
be done. Unions can be organized in spite of crooked spy activities. 
They have been. They will be. 



However, the job of union-building is not easy. It must be ap- 
proached seriously and sensibly, with determination to succeed. 
If workers tackle the job in that spirit, the outlook will not be dis- 
couraging. Unions have discovered and exposed spies before. They 
can do it again. 

^he essential first step is for every worker to make it Ms task to 
build the union^ just as the spy makes it his task to tear it down. 
This means that every union member must be an active union 
member, interested in what is going on, and doing his share of 
the work. Where there is trade union democracy, where all mem- 
bers are alive to what is happening, where they analyze the prob- 
lems, discuss the solutions, and participate in the decisions, there 
the spy cannot so easily do his deadly work. Where there is trade 
union bureaucracy, where union affairs are given over to a handful 
of officers, where it is left to a small group to run the show, there 
the spy's job of ruining the show is that much simpler. 

Every union member must adopt the spy's tactic of keeping his 
eyes and ears open. He must try to understand what is happening 
in his organization and be on the alert for sabotage. Are committee 
members doing the work they are supposed to do? Was that Red- 
baiting speech a cover for inactivity or treachery on the part of 
the member who delivered it? The member who always goes in 
for hair-splitting is he really honest, or is he a wrecker? These are 
only a few of the things to be observed. But they must be observed 
calmly and carefully. The fact that stool-pigeons are planted in 
trade unions is no reason for undue suspicion, or for going off half- 
cocked on a wild spy-hunt. Union members must be absolutely cer- 
tain of their case before they accuse a fellow member of being a spy. 

Just as it is important for every union member to keep his eyes 
and ears open, so it is important for him to keep his mouth shut. 
He must not talk too much particularly to the fellow who asks 
too much. The danger of "shooting off your mouth" is real. Witness 
the case of Charles Jennings, a union organizer who should have 
known better. A spy for the N.M.T.A. writes to Mr. Stringham: 
" In a little talk with Mr. Earl I told him I had made a close contact 


with one Charles Jennings, of Jersey City. Jennings is the State or 
general organizer for the A. F. of L. He tells me quite freely of bis 
movements and plans regarding organization work. Of course he does 
not suspect my motives." 

Obviously such behavior on the part of a union man is downright 
stupidity. Spies can be licked but an important first requirement 
is the exercise of good common sense by union members. 

Despite the fact that the Wagner Act has outlawed the employ- 
ment of undercover operatives to forestall unionization, despite 
the fact that the Supreme Court has upheld that Act, some em- 
ployers will continue to use spies. They will continue to use them 
because they believe that spies are necessary in the conduct of 
business today. The fact that this is not true doesn't help the situa- 
tion any. So long as employers believe it is true, spies will be hired. 
When Mr. O. P. Briggs was Commissioner of the National Found- 
ers' Association, he said that the spy system was absolutely essen- 
tial: "I regard this as one of the very best investments the Associa- 
tion makes. Without it, I would hardly know how to direct the 
work of the Association. It seems to be an indispensable requisite 
to good results." 

When Mr. Weckler was on the stand, he indicated that he too 
thought there was some excuse for the spy system. In answer to a 
question from Senator Thomas, he said, "I think it is very essential 
that an employer know the situations which surround his business. 
This is one method of getting information." 

Over twenty years ago, General Atterbury of the Pennsylvania 
Railroad, testifying before the Industrial Relations Commission, 
put the matter bluntly: "We have a spy system. There will always 
be one until a better method of handling labor relations is de- 

Employers should realize that "a better method of handling labor 
relations" has been developed. It is for them to grant to labor its 
fundamental right to organize and to bargain collectively through 
representatives of its own choosing. That is the "better method" 
which makes the spy system unnecessary. 


Fair-minded employers will realize that in granting that right to 
labor, they are granting only what they have always enjoyed them- 
selves. In the words of the Supreme Court, "Employes have as 
clear a right to organize and select their representatives for lawful 
purposes as the respondent [employer] has to organize its business 
and select its own officers and agents." 

This means, of course, that industry must be prepared to give 
up its outworn slogan that has caused so much trouble, "Nobody is 
going to tell me how to run my business." That must be given up 
because it no longer holds. In the twentieth century it is not accu- 
rate to speak of a business as "my business." Today, business 
is the affair of both the employer and the employee. Fixing the 
conditions of work, the hours and the wages, is the business of both 
the boss and the worker. It is not possible, today, to permit a 
single employer, or a group of employers, to determine the condi- 
tions of labor; labor's representatives must have an equal voice in the 
determination of those conditions. This participation by those who 
work in the decisions affecting their livelihood is nothing more or 
less than democracy in industry. It is as important as democracy 
in politics if not more so. 

Labor's voice, when it is heard, must not be that of individuals 
shouting each other down. It must be a collective voice. Only 
through genuine collective bargaining can labor attain the equality 
with capital that is its right. The Wagner Act states specifically 
that: "Representatives designated or selected for the purposes of 
collective bargaining by the majority of the employees in a unit 
appropriate for such purposes, shall be the exclusive representatives 
of all the employees in such unit for the purposes of collective bar- 
gaining in respect to rates of pay, wages, hours of employment, or 
other conditions of employment." 

This does not mean that individual employees or groups may not 
present their grievances to the employer. Not at all. It does mean, 
however, that they are prevented from making separate agree- 
ments with the employer in regard to hours, wages, and working 
conditions, which are the sole function of the bargaining agency. 


This, again, is the democratic method. Those anti-union em- 
ployers who have suddenly become concerned with the rights of 
the minority (strangely enough, they never gave a thought to 
this before the passage of the Wagner Act) are guilty of distortion 
of the facts. Industry is run on the principle of majority rule; so is 
politics. Many millions of Americans voted for Landon in the last 
election; many more millions voted for Roosevelt. Roosevelt is the 
president not alone of those people who voted for him, but of all 
the people. 

To argue against collective bargaining on the further ground 
that it is not necessary, because employers have always been willing 
to listen to the grievances of their employees, is contrary to the 
spirit of democracy. The Commission on Industrial Relations 
pointed this out in a striking passage: "A great deal of testimony 
has been introduced to show that the employers who refuse to deal 
collectively with their workmen do in fact grant audiences at which 
the grievances of their workmen may be presented. One is repelled 
rather than impressed by the insistence with which this idea has 
been presented. Every tyrant in history has on stated days granted 
audiences to which his faithful subjects might bring their com- 
plaints against his officers and agents. At these audiences, in theory 
at least, even the poorest widow might be heard by her sovereign 
in her search for justice. That justice was never secured under such 
conditions, except at the whim of the tyrant is sure. It is equally 
sure that in industry justice can never be attained by such a 

Some die-hard employers who see that collective bargaining has 
come to stay have resorted to two tricks to retain their dictatorial 
power: the first is to grant collective bargaining to a company 
union; the second is to build up the myth that all union leaders are 
crooks or Reds. Intelligent workers will not be fooled by either 

The company union is a fake. It is a dummy organization which 
enables the employer to control both sides of the table when there 
is any attempt at collective bargaining. Workers* representatives in 


a company union cannot be free and fearless, because they are paid 
their wages by the man with whom they are negotiating. The com- 
pany union, by its nature, prevents the workers in one plant from 
organizing with workers in other plants. Senator Robinson on 
April 7, 1937, hit the nail on the head in a speech delivered on the 
floor of the Senate: "Whenever an organization is fostered and 
promoted and financed by the company itself for the purpose of 
controlling the laborers and preventing them from exercising the 
rights which sound public policy guarantees to them it constitutes 
a 'company union/ Of course, such union is not always heralded 
as a scheme or enterprise to interfere with the rights of laborers, 
but, as a matter of fact, the object is to control the workers them- 
selves, particularly in their exercise of the right of collective 

Workers must steer clear of company unions, employees* as- 
sociations, and the like. They must profit from the example of the 
employers organize in groups of their own for their own interests. 

They must not let themselves be fooled by the lies about trade 
unions, spread by the splitters of the ranks of labor. The leaders 
of the trade unions are not crooks in most unions there is a very 
strict periodic accounting of all union funds. The instances of union 
officers running off with the money are few and often the crook 
is a spy sent in to rob the treasury. Racketeering by union leaders 
does occur, but it is highly exaggerated. There is less racketeering 
by union leaders than by business leaders. Trade union dues are 
low when thought of in terms of the benefits received. Company 
union dues, where they exist at all, are lower they should be 
because the benefits go to the employer, not to the worker. The 
leaders and members of trade unions are not "Reds"; they are 
Democrats, Republicans, Socialists, Communists, Catholics, Jews, 
Protestants, just as in the business world. 

What is to be done ? 

How can the despicable spy system be destroyed? Here is the 
answer, given by John L. Lewis, after the U.A.W.A. had signed a 
contract with General Motors: "There will now be no need for 


labor spies, for obviously everybody will know who the union 
members are. They have no secrets and the union will be willing to 
advise General Motors of any action taken at meetings. The same 
situation will now prevail as obtains in the mining industry, where 
there are no secrets and where detective agencies are starving to 
death. This detective thing is a ghastly chapter in the history of 
General Motors and the whole industry." 

Many years ago, Henry Demarest Lloyd, a great American, 
made a profound observation about the ghastly business of indus- 
trial espionage. He said, "A spy at one end of an institution proves 
that there is a tyrant at the other." 

In the United States of America there is no room for tyrants. To 
get rid of the tyranny in American industry is the job of the workers 
of America. There is only one way to do it 





[NOTE. This list is based on that 
contained in Cabot Fund Report, as of 
1920; agencies added are preceded by an 
asterisk (*).] 

Abbott's Inc., Chicago. 

*Acme Detective Agency, San Francisco, 

*Active Industrial Service, New York 

Addis Detective Agency, Philadelphia. 

A. D. T. Protective Service, Cincinnati. 

*Aetna Judicial Service, New York. 

*A. A. Ahner Detective Agency, St. Louis, 
Mo. (See Industrial Investigators and 
Engineers, Inc.) 

Alexander & Leweck, Milwaukee. 

*American Confidential Bureau (Charles 
W. Hansen), New York City, 605 Fifth 

American Detective Service Co., Chicago. 

*American Loyalty League, San Fran- 
cisco, Calif. 

*American Plan, George W. Frothingham, 
president, and John A. Lucett, secre- 
tary, Cleveland, Ohio. 

*American Vigilant Intelligence Federa- 
tion, H. A. Jung, Chicago. 

Armsworth & Cavett Agency, Pittsburgh. 

Ascher Detective Agency, New York City. 

*Aster Detective Service (William M. 
Tivoli), New York City. 

*Atlas Detective Bureau, Philadelphia, 

Baldwin-Felts Agency, Roanoke, Va.; 
Bluefields, W. Va. 

*Bargron Detective Agency, Rockford, 

*Barthell Detective Agency, Nashville, 

*Bell Detective Service, Philadelphia, Pa. 

Bergoff Bros., New York City. (Bergoff 
Industrial Service, Inc., 551 Fifth Ave- 
nue, New York.) 

*Berkshire Detective Agency, Brooklyn, 
N. Y. (Joe Lawrence, alias Joseph La 

*Bernhard Haas, New York City. 

B & M Secret Service Bureau, Detroit. 

*Bodeker National Detective Agency, 
Birmingham, Ala., and in Chattanooga. 

*H. S. Boulin, New York City. 

*Bowers Detective Service, Philadelphia, 

*R. W. Bridgman Detective Bureau. (See 
Morse Detective and Patrol Service.) 

*S. S. Brody, Buffalo, N. Y. 

P. J. Burke National Detective Agency, 

Burr-Herr Agency, Chicago. 

Burton Detective Agency, Cleveland. 

Walter J. Burns, Detroit, Mich. 

William J. Burns, International Detective 
Agency, Inc., New York City. Branch 
offices in other cities. Representing 
American Bankers' Association. Crim- 
inal, general, industrial, and commercial 
detective work. Branch offices at At- 
lanta, Baltimore, Birmingham, Boston, 
Brussels, Bridgeport, Buffalo, Chicago, 
Cincinnati, Cleveland, Dallas, Denver, 

1 66 


Des Moines, Detroit, El Paso, Houston, 
Jacksonville, Kansas City, London, Los 
Angeles, Memphis, Miami, Minne- 
apolis, Montreal, New Orleans, New 
York, Oklahoma City, Paris, Phila- 
delphia, Pittsburgh, Portland, Provi- 
dence, Richmond, Salt Lake City, San 
Francisco, Seattle, Spokane, St. Louis, 
St. Paul, Toronto, Vancouver, Wash- 
ington, D. C., Wilkes-Barre. 

Butler System of Industrial Surveys, 
New York. 

H. J. Carling, St. Paul. 

*Central Industrial Service (see R. A. and 
I. Co.), Pittsburgh, Pa. 

*Clarke's Detective Agency, Buffalo, 
N. Y. 

R. J. Coach Co., Cleveland. 

*Harry J. Connors (aided by James 
Walsh), New York. 

*Contra Costa County Industrial Associa- 
tion, Richmond, Calif. 

Thomas J. Corbally Detective Agency, 
Inc., Newark, N. J. 

Corporations Auxiliary Co., New York 
City, incorporated in Ohio, uses name 
"International Auxiliary Co." in New 
York State. Employment service under 
name of "Eastern Contracting & Engi- 
neering Co." at same address. Other 
offices at Chicago, Cleveland, St. Louis, 
Buffalo, Milwaukee, Pittsburgh, Cin- 
cinnati, and Detroit. 

Corporations Service Bureau, Detroit. 

*Corporations Service Investigation Cor- 
poration, Youngstown, Ohio. (See Na- 
tional Corporations Service, Inc.) 

*D. F. Costello Bureau, San Francisco, 

Cal Crim Agency, Cincinnati. 

*Cresswell Agency, Akron Savings & 
Loan Building, Akron, Ohio. 

*H. C. Gumming Detective Agency, 
Reading, Pa. 

*Russell Davis, San Francisco, Calif. 

*W. C. Dannenberg, in West Monroe 
Street, Chicago. 

*Dawn Patrol, Detroit, Mich. 

*Dougherty's Detective Bureau, New 
York City. 

*W. Howard Downey and Associates, 
New York, Chicago, Atlanta, Toronto. 

*Drummond Detective Agency, 521 
Fifth Avenue, New York. 

Dunn's National Detective Agency, De- 

*Arthur F. Eagan, New York City. 

*Eagle and Industrial Associates, New 
York City. (.SVfEagleDetectiveAgency; 
Sherwood Detective Bureau.) 

Eagle Detective Agency, New York City. 
(See Sherwood Detective Bureau; 
Eagle Industrial Associates.) 

*Eastern Engineering Co. 

Employer's Detective Service, St. Paul. 

Farley Detective and Strikebreaking 
Agency, Chicago, 111., Milwaukee. 
Principal, Jim Farley, dean of Ameri- 
can strikebreakers. 

*Farrah Secret Service, Detroit, Mich. 

John E. Ferris Intelligence Service, Mil- 

*Fred Fields Detective Agency, Cleve- 

*William J. Flynn Agency, New York 
City, 1457 Broadway. 

*Forbes International Detective Agency, 
Philadelphia, Pa. 

Robert J. Foster Service, New York City, 

*Franklin & Stoner, New York City, 

Gale National Detective Agency, St 

*Gignat Secret Service, Private Detective 
Agency, San Francisco, Calif. 

Gordon & Allen, St. Paul. 

F. P. Gordon Detective Bureau, Mil- 

Goldsmith Agency, Cleveland. 

*Gorman Detective Agency, Buffalo 
N. Y. 

Gorton National Detective Agency, Chi 

Greensburg Detective Agency, Greens- 
burg, Pa. 

Matthew Griffin Co., Philadelphia. 

Hallerin Agency, Grand Rapids, Mich. 

Hamilton Detective Agency, Pittsburgh. 

Hannons Detective Agency, Minneapolis. 

The Edward J. Hargrave Secret Service, 

Harding Detective Agency, Chicago, 111. 

Harris Detective Agency, Pittsburgh. 

*Hartford Private Detective Bureau. (See 
Morse Detective and Patrol Service.) 

*Edward Z. Holmes Detective Bureau, 
New York City. 

Hoy Detective Bureau, Minneapolis. 

*Otis Hulbert, Cleveland, Ohio. (See Na- 
tional Corporation Service, Inc.) 

*Industrial Council of Washington, Seat- 
tle, Wash. 

Industrial Defense Detective Agency, 

*Industrial Investigators and Engineers. 
(See A. A. Ahner Detective Agency.) 

Industrial Relations Service, Ltd., New 
York City. 

international Auxiliary Co., Kenmore, 
N. Y., Buffalo, N. Y., Hartford, Conn. 

Independent Operation Union, Pitts- 
burgh, Pa. 

*Intercity Protective Agency, New York 

International Detective Agency, Phila- 
delphia, Pa. 

International Detective Service, Minne- 

international Labor Bureau. (See R. A. 
and I. Co.) 

*International Library Service. (See R. A. 
and I. Co.) 

The International Secret Service Co., 

Interstate Detective Agency, Chicago. 

Jerome Agency, Pittsburgh (headquarters 
in San Francisco). 

Frederick W. Job, expert in labor matters, 
Marquette Building, Chicago. 


*Col. Joseph Johnston (Lake Erie Chemi- 
cal Co.), Cleveland. 

J. Oswald Jones, detective agency, St. 

*A. J. Kane Detective Agency, San Fran- 
cisco, Calif. 

The Kane Service, Chicago. 

Kelly-Gleason Detective Agency, Minne- 
apolis (branch office in Des Moines). 

Capt. Bernard Kelcher, New York City. 

*Kemp Agency, Nason & Roolett, Inc., 
San Francisco, Calif. 

*Keystone Operation Union, Pittsburgh, 

*Keystone State Detective Agency, Phil- 
adelphia, Pa. 

*Kurty Detective Agency, Wilkes-Barre, 

*Robert Lawrence Detective Agency, 
Brooklyn, N. Y. 

Edmund Leigh, New York City. (See Na- 
tional Intelligence Plant Protection 

Madison Detective Bureau, New York 

*Managers Operation Union, Pittsburgh, 

*Manufacturers' and Merchants' Inspec- 
tion Bureau. (See Howard W. Russell, 

Manufacturers' Auxiliary Co., Detroit. 

Manufacturers' Efficiency Service, De- 

Manufacturers' Service, Cleveland. (See 
H. Clay Folger, Schofield Bldg., Cleve- 

*Ignatius McCarty, San Francisco, Calif. 

*McDuff National Detective Agency, 
Birmingham, Ala. 

*G. T. McNulty, Inc., Philadelphia, Pa. 

Merchants' Industrial Association, New 
York City. 

Merchants' National Detective Bureau, 
St. Paul. 

*Merchants' Secret Service Corporation, 
Fort Wayne, Ind. 



*Metlers Mutual Agency, Sikeston, Mo. 

Metropolitan Agency, Cleveland and De- 

Jake Mints Agency, Cleveland. 

The Mooney-Boland-Southerland Corpo- 
ration, Chicago, Detroit, New York 
City. (See Fred C. Mumford Agency.) 

Tommy Moran, Pittsburgh. 

*More Detective and Patrol Service, Wil- 
son, Conn. 

*Fred C. Mumford Agency (successor to 
Mooney & Boland), New York City. 

The Murphy-McDonnel Secret Service 
Co., Detroit. 

The Murphy Secret Service, Detroit. 

McGovern Detective Service, Pittsburgh 
(special representatives in 20 cities). 

McGrath Secret Service Co., 8820 Car- 
negie Ave., Cleveland. 

McGuire & White Agency, Chicago. 

McLellan's Detective Bureau, New York 

Morgan Detective Agency, Boston. 

National Mutual Service. 

National Manufacturers' Syndicate. 

These last two names are used by the 
personnel and training department of 
the Sherman Service, Inc. National 
Manufacturers' Syndicate has its head 
office in Chicago and recruiting offices 
at New York City and Boston. Other 
offices are in Philadelphia, Cleveland, 
St. Louis, and Toronto. 

*National Corporation Service, Inc. (E. 
E. MacGuffin), Youngstown, Ohio. 

*National Corporation Service of La., 
New Orleans. 

*National Detective Agency, Newark, 

National Detective Agency, Detroit. 

*National Detective Service, Philadel- 
phia, Pa. 

National Erectors' Association, Chicago. 

National Founders' Association, Chicago. 

National Metal Trades Association, Chi- 

*New Jersey Engineering Corporation. 

North American National Detective Bu- 
reau, East Minneapolis. 

North Western Detective Agency, New 
York City. 

Northern Information Bureau, Minne- 

O'Brien & Sons Detective Agency, Chi- 

Captain O'Brien's Detective Agency, 
New York City. 

J. F. O'Brien Detective Agency, Newark, 

Rouse O'Brien, Cincinnati, Ohio. 

*O'Connell Detective Agency, 342 Madi- 
son Avenue, New York. 

*Val O'Farrell Detective Agency (A. B. 
Ownes), New York City. 

O'Neil Secret Service, Detroit. 

*Val O'Toole's Detective Agency, New 
York City. (See Pioneer Industrial 

*Pattee Service, St. Louis. 

*Forest C. Pendleton, Inc. (See R. A. & I. 

*Pennsylvania Industrial Service. (See R. 
A. & I. Co.) 

Perkins Union Detective Agency, Pitts- 

*Peterson Detective Agency, Pittsburgh. 

Pinkerton's National Detective Agency. 
Offices: New York, Boston, Philadel- 
phia, Los Angeles, Hartford, Syracuse, 
Baltimore, Atlanta, Buffalo, Montreal, 
Dallas, Cleveland, Toronto, Pittsburgh, 
Chicago, Detroit, Cincinnati, Minne- 
apolis, Denver, St. Paul, St. Louis, 
New Orleans, Richmond, Kansas City, 
Houston, Providence, San Francisco, 
Salt Lake City, Spokane, Seattle, Port- 
land, Ore., Indianapolis, Omaha, Mil- 
waukee, Scranton. 

*Pioneer Industrial Service, New York 

Pioneer International Detective Bureau, 

Production Service Co., Cincinnati. 



Railway and Industrial Protective Asso- 
ciation, Philadelphia and Pittsburgh. 

Railway Audit & Inspection Co., Phila- 
delphia and Pittsburgh. 
*Pennsylvania Industrial Service. 
*Central Industrial Service. 
""International Library Service. 
*Forest C. Pendleton, Inc. 
*International Labor Bureau. 

Ray Detective Agency & Merchants' 
Secret Service, Boston. 

Edwin L. Reed & Co., Chicago. 

Rhodes Secret Service Bureau, Cleveland. 

Dominick G. Riley Detective Bureau, 
Inc., New York City. 

Teddy Roberts, Pittsburgh and West 

Howard W. Russell, Inc., or Manufactur- 
ers' and Merchants' Inspection Bureau, 
Milwaukee; industrial department, es- 
pionage work in factories. 

*Saile-Pierson Detective Agency, Phil- 

*Stahl Secret Service, Philadelphia, Pa. 

Schindler, Inc., New York City. Handles 
Sherman's civil and criminal work. 

Scott Secret Service, Philadelphia (now 
Frank L. Scott Detective Agency, 

G. A. Seagrove Co., Chicago. 

Shea and Farley Detective Bureau, New 
York City. 

Sherman Service, Inc. 

Offices (headquarters now at New 
York City): Boston, St. Louis, Phil- 
adelphia, Cleveland, Providence, New 
York, Chicago, New Haven, Detroit. 

Shippy-Hunt International Detective 
Agency, Chicago. 

Soule Secret Service, Chicago. 

Standard Protection Co., Cleveland. 

Standard Secret Service Agency, Detroit. 

Standard Service Co., Cleveland. 

Stanley Detective Agency, Chicago. 

*Sterling Secret Service, Detroit, Mich. 

*Carl Swinburne Agency, St. Louis. 

Tate's Detective Bureau, Philadelphia. 

*Sherwood Detective Bureau. (See Eagle 

Industrial Associates.) 
*Smith's Detective Agency, Dallas, Tex. 
*Standard Industrial Service, New York, 

N. Y. 
Thiel Detective Service Co., New York 

City; central office now in Chicago, St. 

Louis, Mo., St. Paul, other branch 


Trotter Detective Bureau, Minneapolis. 
*Elsie M. Tunison, Detroit, Mich. 
*T. R. Turner, New York. 
William J. Turner Detective Agency, 

*United Detective Bureau, New York 


*United Detective Service, San Fran- 
cisco, Calif. 

United Service Co., Cleveland. 
Waddell-Mahon Agency, New York City. 
Washington Detective Agency, New 

York City. 
Washington Service Bureau, New York 

City (Jack Cohen, A. D. Cohen). 
*Watkins Jacobs Detective Agency, 

Youngstown, Ohio. 
*Watts & Whelan, Detroit, Mich. 
Western Construction Co., Chicago. 
*C. R. Williams Investigating Bureau, 

New York City. 
Williams Agency, Boston. 
Wilson's Detective Agency, Milwaukee. 
Daniel Wolff Agency, New York City. 
*Wood Service System, 1228 Ninety-first 

Street, New York City. 
Young's Detective Agency, New York 


1 Prelim., p. 72 ff. 


Type of spy report received by Mr. 

Weckler of the Chrysler Corp. 

JULY yTH, 1936 
A special meeting of local officers of the 



United Automobile Workers and dele- 
gates and officers of the Automotive In- 
dustrial Workers Association, Mechanics 
Educational Society and Associated Au- 
tomobile Workers of America, was held 
Tuesday evening, July yth, at A.I.W.A. 
headquarters, 8944 Jos Campau Avenue, 
with an attendance of about 60 officers 
and delegates. 

Richard Frankensteen acted as chair- 
man. Arthur Greer served as secretary. 

The first question brought before the 
meeting was in connection with straight- 
ening out the list of delegates that were 
selected to serve on the District Organiz- 
ing Committee at a previous meeting, 
held Tuesday evening, June 3oth. At that 
meeting there was much confusion as to 
who was appointed to the committee and 
in some cases delegates were -appointed to 
the committee and did not know it while 
in other cases certain delegates believed 
they were on the committee but found out 
later on that they were mistaken. 

This evening a complete list of the tem- 
porary Organizing Committee of 21 was 
made known as follows: 

George Wilson, Dodge 

"Red" Miller, Mixed Local #155 (for- 
merly M. E. S.) 

Cliff Zimmerman, Dodge 

Arthur Greer, Hudson Motor 

Gould, Murray Body 

R. Thomas, Chrysler (Kercheval) 

Reuther, Terns ted ts 

Kindle, Kelsey Wheel 

McKie, Ford Motor 

Willis, Motor Products 

Ayers, Graham-Paige 

Andrews, Dodge 

Loyd Jones, Motor Products 

Maurice Fields, Dodge 

J. Kennedy, Chrysler 

Barber, Fisher Body Local #157 (for- 
merly M. E. S.) 

Berry, Zenith Carburetor 

Coleman, Herron-Zimmer Molding Co. 

A letter prepared by Seymour, an offi- 
cer of the transmission department dis- 
trict local (Dodge), was read, in which 
Seymour suggested that members of or- 
ganized labor should confine their pur- 
chases as much as possible to merchandise 
bearing the union label. He explained in 
his letter that many members of organ- 
ized labor overlook entirely the union 
label program and soon fall into the habit 
of buying merchandise that is made 
under "unfair open shop" conditions. 

The only comment made about this let- 
ter was when the delegates agreed to carry 
out this recommendation as closely as 

Secretary Arthur Greer read some pre- 
pared statements issued at the time 
Mayor Tenerowicz of Hamtramck was a 
candidate for election this year. Accord- 
ing to the statement read by Greer, 
Mayor Tenerowicz in his campaign for the 
office of Mayor, stated that if elected to 
office, he would see that the Hamtramck 
Police Department would not interfere 
with peaceful picketing or escort "strike 
breakers" to a plant and in fact would 
keep the Police Department out of the 
strike as long as the strikers did not resort 
to destruction of private property. Also 
in this statement, that Greer read, Mayor 
Tenerowicz stated that he would also stop 
the Police Department from interfering 
with the distribution of handbills around 
the plants. 

Following the reading of this letter, 
Frankensteen remarked that the Ham- 
tramck Police are interfering to some ex- 
tent with the distribution of handbills. 
During the discussion that followed, it 
was agreed to send a typewritten copy of 
these statements, made during the election 
campaign this year, to Mayor Tenerowicz 
and another copy to the Hamtramck Po- 
lice Department. Also copies will be 
mimeographed later on and sent out to all 
members of the United Automobile Work- 



ers, especially members of local unions in 
Hamtramck. . . . 

Frankensteen said during the past week 
he has talked upon several occasions to 
small groups of Fisher Body employees of 
the Piquette Avenue plant, having met 
them nearby in beer gardens and res- 
taurants, and his contacts indicate that 
these men are deeply interested in organ- 
ization and all that is necessary to bring 
them into the folds of organized labor is 
some constructive work on the part of the 
organizers. Frankensteen said he intends 
to keep in touch with the Fisher Body em- 
ployees and will assist the organizers in 
preparing meetings and will also speak at 
these gatherings. 

Frankensteen announced that a series 
of four mass meetings will be held in dif- 
ferent sections of the city, commencing on 
Thursday evening of this week. He said on 
Thursday, July 9th, the first of these mass 
meetings will be held at Chandler Park 
and included among the speakers will be 
Adolph Germer, the personal representa- 
tive of John L. Lewis and his Committee 
for Industrial Organization. He explained 
this mass meeting is being held especially 
for employees of Chrysler, Hudson Motor, 
Zenith Carburetor, Motor Products, 
Briggs, Budd Wheel, Bower Roller Bear- 
ing, Freuhauf Trailer, Federal Mogul, 
Bohn Aluminum, Acme Die Cast and 
Detroit Vapor Stover. He said the mass 
meeting next week will probably be held 
in Hamtramck and efforts will be made to 
secure the Rosinski Stadium, at the corner 
of Jos. Campau Avenue and Dan Street. 
He explained that it is not certain if this 
stadium can be rented and the exact date 
of the meeting next week has not been 
decided upon. He said this, however, will 
be announced later this week over the 
radio broadcasts on Friday, and Saturday 
on Station WMBC. In this connection, 
Frankensteen explained that the United 
Automobile Workers have secured time 

on Station WMBC on Friday evenings 
from 10:15 P. M. to 10:30 P. M. and on 
Saturday evenings from 7:15 p. M. to 
7:30 P. M. He said both of the programs 
this week will be in English, but arrange- 
ments are being made to broadcast a 
Polish program on either Friday or Satur- 
day of next week and hopes to have Leo 
Kryzki, speak. Kryzki is Vice-President 
of the Amalgamated Clothing Workers, 
one of the International Unions that com- 
poses the Committee for Industrial 

Frankensteen announced that Inter- 
national President Homer Martin of the 
United Automobile Workers visited 
Washington last week and spent consider- 
able time with John L. Lewis and com- 
pleted arrangements for the International 
Union of the United Automobile Workers 
to join with the Lewis Committee for In- 
dustrial Organization. He said the United 
Rubber Workers has also joined the Com- 
mittee for Industrial Organization and 
this makes 12 International Unions that 
are represented on the committee. 

Frankensteen said Martin returned to 
Detroit yesterday but left for Pittsburgh 
today where he will meet with the organ- 
izers in the steel drive and other members 
of the Committee for Industrial Organi- 
zation, for the purpose of making definite 
arrangements to send four or five organ- 
izers to Detroit and also arrange for finan- 
cial aid and work out other details in con- 
nections with launching a drive in the 
auto industry. Frankensteen said he 
understands that four or perhaps five 
organizers from the Committee for Indus- 
trial Organization will be sent to Detroit 
in about two weeks. Frankensteen stated 
that this coming organizing drive in the 
auto industry will be carried on under the 
supervision and direction of the Commit- 
tee for Industrial Organization. 

In his concluding remarks, Franken- 
steen stated that handbills have been pre- 



pared announcing a meeting to be held at 
Chandler Park on Thursday evening, July 
9th and explained that these leaflets will 
be distributed around the East Side plants 
on Wednesday and Thursday. He said 
delegates present this evening who are 
employed in East Side shops might find 
an opportunity to carry a few of these 
handbills inside and distribute them to 
some of their friends. 

Following Frankensteen's talk, there 
was some general discussion in which 
most of the delegates took part. This was 
to the effect that the women folks and 
wives of union members are not support- 
ing the union properly. It was argued that 
many of the wives object to their hus- 
bands attending meetings, on the grounds 
that after the meetings are over they visit 
beer gardens and other amusement places 
and do not get home until one or two 
o'clock in the morning. During the dis- 
cussion, it was admitted that many mem- 
bers took advantage of the union meet- 
ings to have a "night out" and this has 
become known to many of the women 
folk, with the result that many members 
complain that their wives put up serious 
objection whenever they want to attend a 
union meeting. 

Frankensteen brought his discussion to 
an end by explaining that he will arrange 
for a special radio program for the women 
folks and explain to them how necessary 
it is for their husbands to attend union 
meetings if a successful organization of 
auto workers is to be set up. 

James Foster, who has been very active 
in the Automotive Industrial Workers 
Association, declared that right now 
would be a very favorable time to put 
forth some real organizing efforts directed 
toward the Briggs employees. Foster ex- 
plained that Briggs owns the Detroit 
Tigers Baseball Club and if a strike 
should develop at the Briggs Plant during 
the course of organization, then Navin 

Field could be picketed. He said this or- 
ganizing drive of course would have to 
take place during the baseball season. The 
other delegates present this evening ap- 
parently did not think much of Foster's 
suggestion because no other comment was 

It was very warm in the hall this eve- 
ning and many of the delegates complained 
about the heat, with the result that Chair- 
man Frankensteen adjourned the meeting 
at 9:30 P. M. 


The above information, obtained from 
sources deemed reliable, is furnished 
without responsibility on the part of this 

Report of Burns Operative, Robert W. 
Coates, on a union organization meeting 
which he attended, and in which he took 
an active part: 

(Saturday}, July lyb, 1933. 
Pittsburgh Operator No. 8062 
Pittsburgh Investigator C-24 Reports: 

Having been instructed by Acting 
Manager D. R. S. to wait at the Agency 
Office, I there met Pittsburgh Investiga- 
tor D-i and Mr. Morrow. I was in- 
structed to accompany Investigator D-i 
to the vicinity of the McGeagh Building 
where those identified with the bakery 
industry were to have a meeting. I was 
instructed to endeavor to be admitted to 
the meeting and ascertain what tran- 

At 7:30 P. M. I left the Agency Office 
accompanied by Pittsburgh Investigator 
D-i and when at an appropriate distance 
from the McGeagh Building, we sepa- 


Approaching the McGeagh Building, I 
observed several men who were no doubt 
active in unionism, closely observing all 
those who were entering the building. 
Watching my opportunity I managed to 
go into the building immediately in the 
rear of three other men who had inquired 
if there was a meeting in the building. 
The watcher at the front of the building 
advised us the meeting was in the room in 
the rear of the third floor of the building. 

I followed up the stairs to the third 
floor and observed several men in the 
third floor hall closely observing all men 
that entered the rear room where the 
meeting was to be held. 

After entering I counted the number of 
men present and found there were seventy- 
eight young and older men in the room. 
Several of the younger men especially ap- 
peared to be truck drivers. In fact the 
majority appeared to be those employed 
in distribution rather than in the manu- 
facturing end. 

Seated up front at the chairman's table 
was an Irishman whom they all appeared 
to refer to as Dan, although one man 
present in the hall advised me he was Mr. 
Metche. Seated to the left of the chair- 
man's table was a man they all addressed 
as Sam, a Jew, possibly Russian Jew, who 
has evidently been in this country for 
some time, as he spoke very good English, 
had exceptionally good diction, and a very 
forceful fellow of about 35 years of age. 
Later I learned that Sam was the Busi- 
ness Agent and that Metche was Presi- 
dent of the Bakers Union. 

At the opening of the meeting Metche 
addressed the men as non-union men and 
stated that he was very much gratified at 
seeing so many present. Metche went on 
to explain that he and Sam had been very 
active in the past two weeks in trying to 
interview as many men employed in 
bakeries about Pittsburgh as they could 
and that he did not expect to see so many 

present. (At this time there were several 
more men entering the room. Later addi- 
tions brought the total number to over 
one hundred men present.) 

Metche advised the men that the In- 
dustrial Recovery Act recently passed 
had made it possible for the men to secure 
their rights and proper recognition with 
their employers and that they desired to 
unionize the baking industry as a whole, 
taking in every one employed about the 
shop whether he be a truck driver, baker 
or shop man, salesman, and in fact all 
those employed in the baking industry. 
He stated that he observed one shop 
represented one hundred per cent and I 
inquired from one of the men and learned 
that he had reference to the men from the 
Hankey Baking Company. 

After the usual organizers speech 
pointing out to the men what benefits 
unionism would give them if they joined, 
Metche introduced the Business Agent as 
"Sam" the Business Agent, who would 
also address the men. There appeared to 
be some significance in the manner in 
which reference was made to this man and 
that by addressing them by their Chris- 
tian name. 

Business Agent Sam then addressed the 
men urging them to join the union. He 
stated the initial cost would be $5.00 to 
join and $2.25 per month dues for bene- 
ficiary members and $1.40 per month for 
non-beneficiary members. In case of death 
of a beneficiary member, his beneficiary 
would receive $300.00, and in case his 
wife died, he would receive $75.00. 

Sam stated there had been deep inroads 
made in the ranks of the union bakers and 
that he had learned the Master Bakers 
were preparing their Code to submit to 
Gen. Hugh S. Johnson, Recovery Ad- 
ministrator and that they had decided on 
asking for a forty hour week with a mini- 
mum wage of $20.00 per week with pro- 
portionate wages accordingly and he 



wanted all the men to join so that the 
Bakers Union could show at least 75% 
unionism and demand a thirty hour week 
with a $30.00 minimum wage. Some young 
fellow stated in interruption that he only 
earned twelve dollars a week. Sam went 
on to explain to the men that he felt con- 
fident that if a sufficient number joined it 
would only be a matter of another month 
when they could demand this or close up 
the shops. 

Sam then urged the men to come for- 
ward and sign a pink application blank 
to join the union. The men did not rush to 
do so and considerable comment surged 
through the men in the room. I suggested 
to one man who remarked to me that he 
did not know whether there was anyone 
from his shop that was spotting and he 
was not going to take any chances on 
losing his job as he had not been working 
very steady. I suggested that he suggest 
that the application blanks be passed 
around to each man in the room and let 
him take it home and decide to do what 
he wanted. This was overheard by a 
young man, who took it up from the floor 
and this was done. I received one of the 

At this juncture the men were display- 
ing considerable concern over the initia- 
tion fee demanded and there was consid- 
erable discussion among the different 
groups and mixing in I suggested that as I 
had only worked eight days out at Hallers 
I did not have the money to spare but 
that my idea would be to take all the old 
union members in that had dropped out 
free of any back dues and all the new mem- 
bers at some nominal sum such as a dollar 
in order to get each and every man. One 
man who is very likely a union man ad- 
vised me that my suggestion would have 
to go before the executive board. I argued 
my point and stated that if they want to 
get all the men in my idea would not work 
a hardship on those like myself who had 

been out of employment so long, also 
pointing out that this was labor's oppor- 
tunity with the cooperation of the govern- 
ment that the labor movement has never 
had in its history. My point seemed to 
carry and the union men took the matter 
up with Sam and Sam came to my chair 
and pointed out that funds were needed to 
defray expenses. I offset this by stating 
that it did not cost near as much to repre- 
sent a million men than it did a thousand 
as quicker results can be obtained if the 
initiation expense was totally cut out as it 
was quantity in numbers that was re- 
quired now in a very limited time and 
that when the men did sign up strong to 
say 85 or 90% it would only be a month 
when the dues would be pouring in and 
the desired result would be the same, re- 
gardless as to whether the $5.00 was paid 
in or not. 

Sam got my point and then advised the 
men that if they could not spare the $5.00 
to turn in $1.00 with their application and 
he would take the matter up with! the 
executive board and know more about 
what their action would be at the next 
meeting to be held the first week in Au- 
gust. This went over pretty good and an 
elderly man paid in one dollar for himself 
and five dollars for five others. When 
Sam saw that this was going over so well 
he again came to my chair and asked me 
for my application and I advised him of 
my financial circumstances pointing out 
to him that as I had just been employed at 
Hallers Bakery only eight days ago and 
did not know all the men and was afraid 
there might be someone spotting in the 
room, I would rather mail my application 
in. I advised Sam there was no doubt in 
my mind that several others felt just like 
I did and Sam then went on to declare to 
all the men that another good point had 
been brought up and that while arrange- 
ments had been made to stop any spotters 
coming to the meeting and he was con- 



fident there were none present, it was 
possible there were men in the room who 
desired to join and were afraid they 
might lose their jobs but if they desired to 
do so they could fill out their own applica- 
tion blank and mail it to him and he as- 
sured all those present that he and no one 
else would know who joined until the or- 
ganization was complete, and the records 
then turned over to their secretary, to be 
elected later by them. 

Sam and Metche finally enlisted what I 
would estimate about forty members and 
at the $1.00 fee but it is quite likely that 
at least another 20% more would sign 
their application and mail it in. 

During the filling out of the applica- 
tions the men milled about the room and I 
met Sam later when he inquired of me as 
to my name. I gave him a name and ad- 
vised him that I would very likely send in 
my name, but desired more secrecy as I 
did not wish to lose my job, which ap- 
peared to satisfy him. Sam states he was 
well pleased with what applications he 
had received and looked for a large meet- 
ing the first week in August. 

Metche then addressed the men advis- 
ing them that while they could take what 
papers they had received home with 
them, he desired that all the men keep it 
very confidential as to what had gone on 
tonight and not by any chance discuss the 
meeting in their shops as he wanted all the 
men to join and t>hat much better results 
could be obtained if the matter were kept 
secret until the shops were fully organized. 
He stated further that he desired each 
man to work for a 100% organization and 
urged the men to bring some new men to 
the next meeting. 

Metche further stated that organization 
work was going on all over the country in 
all trades to enable their representatives 
of each respective industry to show a 
strong hand when the code for each indus- 
try is finally settled on and it behooves 

every wage earner to join now and show 
a united front in each separate industry. 

Each man present w?? urged to read the 
daily papers about the Industrial Re- 
covery Act and see for himself what a 
wonderful opportunity the wage earner 
has today which he has never had before, 
describing the Industrial Recovery Act as 
a new " Bill of Rights." 

By this time several groups of men were 
leaving the room and continuing on down- 
stairs and I went down to the front of the 
building where I met several congregated 
about the doorway. Mixing in the discus- 
sion I could readily observe that Sam and 
Metche had planted strong arguments in 
fertile ground. While taking part in the 
discussion Sam came down looking and 
inquiring for a fellow he called "Lampel" 
who works out at Hallers Bakery. Not 
knowing Lampel I told Sam so, where- 
upon he stated he was very anxious to 
have seen him before he got away, indi- 
cating he was at the meeting and had left. 
I took this opportunity to properly intro- 
duce myself and compliment Sam in his 
masterful manner in handling his subject 
tonight, but while Sam shook hands with 
me he stated he was " Sam " and desired to 
see me at the next meeting. I told him 
that I expected to be present if I was still 
working and hoped he had success in se- 
curing 1 00% organization. Sam stated he 
was very grateful for the attendance to- 
night and someone in the crowd asked 
Sam where he was from and Sam replied 
"somewhere in Europe" and grinned. 

I joined several of the men in having 
refreshments at a nearby restaurant and 
observed Pittsburgh Investigator D-i in 
the vicinity. Later I left the vicinity of the 
McGeagh Bldg. and joined Investigator 
D-i when we both reported in person to 
Mr. Morrow at his residence on Union 
Ave., N. S. 

Mr. Morrow instructed me to report at 
their office Monday morning at io:oc 

Refreshments i . 20 

Car fare .10 

Time: One day 12.00 



Fill, pp. 3119-3122 


o'clock when he desired me to confer with 
him and others regarding future plans. 

I left Mr. Morrow at 11:00 P. M., re- 
turned to my room where I was engaged 
until 3:00 A. M. preparing this report. 
After doing so I discontinued for the day. 

Supper and lunch $i . oo 


Members of Employers' Association of Akron and amounts of their contributions, 
1933 to 1936: 

1933 *934 1935 1936 

B. F. Goodrich Co. 

500 S. Main Street $6220.70 $9216.01 $10868.64 $11117.52 

Goodyear Tire & Rubber Co. 

1144 E. Market Street $6876.72 $11266.69 $ 1 39%%-3 1 $ I 3792.oo 

Firestone Tire & Rubber Co. 

1278 S. Main Street $4372.45 $7271.00 $9152.96 $9419.44 

General Tire & Rubber Co. 

E. Market & Holmes St $728.55 $1047.72 $1284.56 $1222.64 

Mohawk Rubber Co. 

1235 Second Avenue $279.05 $293.35 $206.30 $158.90 

American Hard Rubber Co. 

Seiberling Street $207.30 $215.75 $220.45 $246.70 

Quaker Oats Co. 

102 S. Howard Street $342 . 65 $367 . 20 $342 . 25 $347 . 35 

Robinson Clay Products Co. 

1 1 oo 2nd National Bldg $6.00 $33-5 $36.00 $36.00 

Akers & Harpham Co. 

1065 Dublin Street $3.00 $5-75 $6.00 $3.00 

Thos. Phillips Co. 

23 W. Exchange Street $50.50 $58.00 $60.10 $60.00 

Carmichael Construction Co. 

148 E. Miller Avenue $8.35 $8.00 None None 

Imperial Electric Co. 

64 Ira Avenue $26.75 $26.50 $30.90 $39.40 

National Rubber Machinery Co. 

917 Sweitzer Avenue $123.30 $126.10 $82.35 $85.25 

Akron Equipment Co. 

E. Exchange & Annadale $21.75 $34- 2 5 $3-9 $32.40 

Mechanical Mold & Machine Co. 

946 S. High Street $53 .15 $57.65 $64.20 $63.70 

Akron Standard Mold Co. 

1624 Englewood Avenue $84.80 $90.75 $85.40 $82.75 


Walter F. Kirn 

366 S. Broadway 

Resigned February, 1933: 
Steigner-Koch Co. 

99 W. Market Street. 
Resigned June, 1936: 

Franklin Brothers Co. 
49 E. Glenwood Ave. 

|2. 60 


|6. 65 



19.40 $10.55 

I hereby certify that the above is a true and correct list of the members of The Em- 
ployers' Association of Akron & Vicinity from January ist, 1933, up to the present date, 
and that the amounts set opposite their names for the years mentioned are the true and 
correct amounts contributed by them respectively to the Association in dues for said 
^ears and that there have been no other contributions. 

H. C. PARSONS, Sec'y-Treas. 

Sample detailed report sent by The 
Goodyear Co. to Mr. Cowdrick, secretary 
of the special conference committee: 

Akron, Ohio, June 12, 1036. 
30 Rockefeller Plaza, 
New York City, N. T. 
DEAR MR. COWDRICK: We have sent 
you some newspaper reports the last few 
days covering reports of the labor situa- 
tion at Gadsden and its effect upon our 
local situation here in Akron. 

We have just received a report from a 
representative of our management in 
Gadsden on this situation which we be- 
lieve will be of interest. 

Dalrymple, President of the Rubber- 
workers Union, talked with our local 
superintendent in Gadsden late Friday 
(June 5) and apparently was satisfied 
with the explanation given him regarding 
the dismissal of two union employees. Both 
of these dismissals were caused by viola- 
tion of company rules. One employee had 

V1L1, pp. 3202, 3203 

spoiled considerable stock and had tried 
to cover up same. The other one had been 
repeatedly warned as to garnisheements, 
but had persisted in not looking after his 
outside financial affairs, and just recently 
was found guilty of some other loose finan- 
cial deals in regards to issuing of checks. 

While in Gadsden, Dalrymple called a 
meeting in the Court House, at which he 
was the chief speaker. The meeting was 
attended by a large group, including most 
of the union people in town. Of this union 
organization there were a large number 
from one of the local textile plants who 
were out of a job. There also were some 
members present from a steel company, as 
well as some from our own plant. 

The statement was made by the speaker 
that there were a number of dissatisfied 
workers in the Goodyear plant and when 
he was asked from the floor who was dis- 
satisfied and who had asked him to come 
to Gadsden, his explanation was met by a 
shower of eggs, tomatoes and rocks. A 
free-for-all fight was precipitated and a 
few knives and guns were drawn by some 
of the radical union members. No one 
was seriously injured, however, and the 


Sheriff escorted Dalrymple out the back 
entrance of the Court House. 

As he came down the steps and started 
across the street a gang of men rushed up, 
and between this point and his hotel he 
was rather roughly treated. 

His wife was at the hotel and they were 
told to leave the town and not return to 
Alabama again. 

During the mixup one of the union men 
had flourished his gun, and some of the 
non-union workers, when he reported for 
work Monday morning, asked if he was 
still armed. When he replied that he was 
not, one of the men in the shop proceeded 
to give him a good beating. This precipi- 
tated some difficulty, and when the super- 
vision were able to break up the trouble, 
they escorted a number of the principals 
to the gatehouse to give them a chance to 
cool off. 

After investigation, the supervision 
found there were other union men on the 
other shift who were going to be given the 
same treatment by non-union workers, 
and so these clock cards were pulled. 

14 employes out of a total of 20 were 
given their pay. This 14 includes the origi- 
nal two who were dismissed. The other 12 
were paid off with the understanding that 
their working in the plant might cause 
trouble and they were advised to stay out 
for some time, but they were not formally 

Federal and State investigators have 
been to Gadsden and yesterday afternoon 
we were visited by a committee of the 
Rubberworkers' Union to discuss this 
Gadsden difficulty and also the dismissal 
of a man at the Kelly Springfield Plant. 

At this meeting we were presented with 
an agreement similar to the one which 
was discussed at the settlement of the 
strike here in Akron. Also, there was 
tacked on it a clause that we would agree 
to pay the same rates of pay in both 
Gadsden and Cumberland that we are 

paying in Akron. The management in- 
formed the Committee that they were 
not in a position to consider this agree- 
ment but would investigate the cases of 
the men at the Gadsden Plant , as well 
as the one at Kelly Springfield. 

This situation, of course, has been the 
cause of some difficulty here in Akron. 
It resulted in complete cessation of opera- 
tions Wednesday midnight. There was 
some further trouble in the Plant II Pit 
because the union workers would not 
work with some of the non-union employes 
in their department. 

The situation yesterday was rather 
tense because of the announcement of the 
future policy that no minimum wage 
would be paid in the future to anyone 
whose earnings were affected by a sit- 
down, nor would minimum wage be paid 
to any employee who reported for work 
and were unable to work because of a 

At the meeting yesterday afternoon, 
however, the union committee discussed 
this new policy with the management and 
seemed to understand it and abide by it if 
we would agree to clean up a couple of 
wage matters caused by the difficulty on 
Thursday morning at Plant II. This was 
cleaned up to the satisfaction of all con- 
cerned and we got by last night without 
any difficulty. 

We will keep you informed as to any 
further developments. 

Yours very truly, 

Manager, Inter Plant Relations, 

L A Hurley 


VIII, pp. 3206, 3207 


Frankensteen's account of the attack 
on him by Ford service men: 

Walter and I walked up and photog- 
raphers called and asked to take a picture. 



They took a picture of the three of us, 
Walter, Jack Kennedy and myself. Im- 
mediately after the picture was taken a 
fellow came over and said, "you are on 
Ford property, get the hell off of here." 
We started to walk for the steps to leave, 
but I hadn't taken three steps when I felt 
a crack in the back of the neck. I turned 
around and as I turned more blows were 
struck. As I started to defend myself they 
got me on all sides. There seemed to be 
about 25 men working on me. 

Participating in the attack on the 
bridge were about 1 50 men. I was knocked 
down, but someone grabbed my coat from 
the back and threw it over my head. They 
knocked me down again, turned me over 
on my side and began to kick me in the 
stomach. When I would protect my side 
they would kick my head. 

One of the attackers would say, "That 
is enough, let him go." Then they would 
pick me up and stand me on my feet, but 
I was no sooner on my feet than they 
would knock me down again. This went on 
about five times. They let me lie there for 
a while; during that time every once in a 
while someone would grind his heel into 
me. They pulled my legs apart and kicked 
me in the scrotum. By this time they had 
me driven to the steps, leading down on 
the east side of the bridge. As I started 
down the first step I was again knocked 
down. They picked me up and bounced 

me from one step to the next. I was 
bounced on each step. As I went down 
four or five j steps I came to the land- 

There were four or five more men who 
proceeded to administer the blows from 
that place. This continued until they had 
me on the cinders by the street car tracks 
on the south side of the fence. At that 
point a street car approached. The men 
began bouncing me on the cinders, pick- 
ing me up and knocking me down on the 

I lost consciousness while on the bridge, 
but when they stood me on my feet it 
seemed to restore my faculties. I knew 
what was going on but could not speak. 

They said, "Go get your coat." My 
coat was lying on the street car tracks. A 
big fat fellow, a man I could identify 
easily, as his face is very pronounced in 
my mind, said, "Go get your coat." As I 
went to pick up my coat I was again 
knocked down. That was the last time 
that I was knocked down. By this time I 
had approached the end of the fence 
where we were picked up by newspaper 
men who drove us to a physician's office. 

During this time the Dearborn police 
who were present made no effort to fore- 
stall this action. 

United Automobile Worker , 
May 29,1937. 
(Reprinted by permission.) 




Description of suppressed Paramount 
News Reel of the "Memorial Day Mas- 
sacre" in South Chicago: 

The St. Louis Post-Dispatch was the first newspaper in the United 
States to print the following account and thereafter it was reprinted by 
many other newspapers. 

Senators See Suppressed 

Movie of Chicago Police 

Killing Steel Strikers 

Brutal Scenes of Memorial Day Vividly Shown in 

News Reel 

Members of Investigating Com- 
mittee Shocked at Picture of 
Officers Firing Pointblank 
Into Crowd of Marchers 


Audience Views Close-Ups of 
Encounter, Accompanied by 
Sounds of Shots and Screams 
of Wounded Demonstrators 

Post-Dispatch Bureau. 

201-205 Kellogg Bldg. 
(Copyright, 1937, Pulitzer Publishing Co.) 

WASHINGTON, June 16. Five agents 
of the La Follette Civil Liberties Com- 
mittee, headed by Robert Wohlforth, the 
committee's secretary, arrived in Chicago 
yesterday to begin an investigation of the 

tragic events of Memorial day, when nine 
persons were killed or fatally wounded by 
city police in smashing an attempt by 
steel strike demonstrators to march past 
the Republic Steel Co. plant in South 

Appearance of the committee's agents 
on the scene coincided with the death of 
the ninth victim, a iy-y ear-old boy re- 
ported to have joined the pickets in the 
hope of getting a job in the mill after set- 
tlement of the strike. 

It was learned today that the commit- 
tee's decision to proceed with the inquiry 
was hastened by the private showing here 
last week of a suppressed news reel, in 
which the police attack on the demon- 
strators is graphically recorded. The com- 
mittee obtained possession of the film in 
New York, after its maker, the Para- 
mount Co., had announced that it would 
not be exhibited publicly, for fear of in- 
citing riots throughout the country. 



Senators Shocked by Scenes 

The showing of the film here was con- 
ducted with the utmost secrecy. The audi- 
ence was almost limited to Senators La 
Follette (Prog.), Wisconsin, and Thomas 
(Dem.), Utah, who compose the commit- 
tee, and members of the staff. Those who 
saw it were shocked and amazed by scenes 
showing scores of uniformed policemen 
firing their revolvers pointblank into a 
dense crowd of men, women and children, 
and then pursuing and clubbing the sur- 
vivors unmercifully as they made frantic 
efforts to escape. 

The impression produced by these fear- 
ful scenes was heightened by the sound 
record which accompanies the picture, 
reproducing the roar of police fire and the 
screams of the victims. It was run off 
several times for the scrutiny of the in- 
vestigators, and at each showing they de- 
tected additional instances of "frightful- 
ness." It is expected to be of extraordinary 
value in identifying individual policemen 
and their victims. The film itself evidently 
is an outstanding example of camera re- 
porting under difficult conditions. 

Description of Picture 

The following description of the picture 
comes from a person who saw it several 
times, and had a particular interest in 
studying it closely for detail. Its accuracy 
is beyond question. 

The first scenes show police drawn up in 
a long line across a dirt road which runs 
diagonally through a large open field be- 
fore turning into a street which is parallel 
to, and some 200 yards distant from, the 
high fence surrounding the Republic mill. 
The police line extends 40 or 50 yards on 
each side of the dirt road. Behind the line, 
and in the street beyond, nearer the mill, 
are several patrol wagons and numerous 
reserve squads of police. 

Straggling across the field, in a long, 
irregular line, headed by two men carrying 

American flags, the demonstrators are 
shown approaching. Many carry placards. 
They appear to number about 300 ap- 
proximately the same as the police al- 
though it is known that some 2000 strike 
sympathizers were watching the march 
from a distance. 

Marchers Halted by Police 

A vivid close-up shows the head of the 
parade being halted at the police line. The 
flag-bearers are in front. Behind them the 
placards are massed. They bear such de- 
vices as: "Come on Out Help Win the 
Strike"; "Republic vs. the People," and 
"C I O." Between the flag-bearers is the 
marchers' spokesman, a muscular young 
man in shirt-sleeves, with a C I O button 
on the band of his felt hat. 

He is arguing earnestly with a police 
officer who appears to be in command. 
His vigorous gestures indicate that he is 
insisting on permission to continue 
through the police line, but in the general 
din of yelling and talking his words cannot 
be distinguished. His expression is serious, 
but no suggestion of threat or violence is 
apparent. The police officer, whose back is 
to the camera, makes one impatient ges- 
ture of refusal, and says something which 
cannot be understood. 

Then suddenly, without apparent 
warning, there is a terrific roar of pistol 
shots, and men in the front ranks of the 
marchers go down like grass before a 
scythe. The camera catches approxi- 
mately a dozen falling simultaneously in 
a heap. The massive, sustained roar of the 
police pistols lasts perhaps two or three 

Police Charge With Sticks 

Instantly the police charge on the march- 
ers with riot sticks flying. At the same 
time tear gas grenades are seen sailing 
into the mass of demonstrators, and clouds 
of gas rise over them. Most of the crowd 



is now in flight. The only discernible case 
of resistance is that of a marcher with a 
placard on a stick, which he uses in an at- 
tempt to fend off a charging policeman. 
He is successful for only an instant. 
Then he goes down under a shower of 

The scenes which follow are among the 
most harrowing of the picture. Although 
the ground is strewn with dead and 
wounded, and the mass of the marchers 
are in precipitate flight down the dirt 
road and across the field, a number of in- 
dividuals, either through foolish hardi- 
hood, or because they have not yet real- 
ized what grim and deadly business is in 
progress around them, have remained be- 
hind, caught in the midst of the charging 

In a manner which is appallingly busi- 
nesslike, groups of policemen close in on 
these isolated individuals, and go to work 
on them with their clubs. In several in- 
stances, from two to four policemen are 
seen beating one man. One strikes him 
horizontally across the face, using his club 
as he would wield a baseball bat. Another 
crashes it down on top of his head, and 
still another is whipping him across the 

These men try to protect their heads 
with their arms, but it is only a matter of 
a second or two until they go down. In one 
such scene, directly in the foreground, a 
policeman gives the fallen man a final 
smash on the head, before moving on to 
the next job. 

In the front line during the parley with 
the police is a girl, not more than five feet 
tall, who can hardly weigh more than ico 
pounds. Under one arm she is carrying a 
purse and some newspapers. After the 
first deafening volley of shots she turns, 
to find that her path to flight is blocked 
by a heap of fallen men. She stumbles 
over them, apparently dazed. 

The scene shifts for a moment, then she 

is seen going down under a quick blow 
from a policeman's club, delivered from 
behind. She gets up, and staggers around. 
A few moments later she is shown being 
shoved into a patrol wagon, as blood cas- 
cades down her face and spreads over her 

Straggler's Futile Flight 

Preceding this episode, however, is a 
scene which, for sheer horror, outdoes the 
rest. A husky, middle-aged, bare-headed 
man has found himself caught far behind 
the rear ranks of the fleeing marchers. 
Between him and the others, policemen 
are as thick as flies, but he elects to run 
the gantlet. Astonishingly agile for one of 
his age and build, he runs like a deer, 
leaping a ditch, dodging as he goes. Sur- 
prised policemen take hasty swings as he 
passes them. Some get him on the back, 
some on the back of the head, but he 
keeps his feet, and keeps going. 

The scene is bursting with a frightful 
sort of drama. Will he make it? The sus- 
pense is almost intolerable to those who 
watch. It begins to look as if he will get 
through. But no! The police in front have 
turned around, now, and are waiting for 
him. Still trying desperately, he swings to 
the right. He has put his hands up, and is 
holding them high above his head as he 

It is no use. There are police on the 
right. He is cornered. He turns, still hold- 
ing high his hands. Quickly the bluecoats 
close in, and the night sticks fly above 
his head, from the sides, from the rear. 
His upraised arms fall limply under the 
flailing blows, and he slumps to the ground 
in a twisting fall, as the clubs continue to 
rain on him. 

CIO officers report that when one of 
the victims was delivered at an undertak- 
ing establishment, it was found that his 
brains literally had been beaten out, his 
skull crushed by blows. 



Man Paralyzed by Bullet 

Ensuing scenes are hardly less poign- 
ant. A man shot through the back is 
paralyzed from the waist. Two policemen 
try to make him stand up, to get into a 
patrol wagon, but when they let him go 
his legs crumple, and he falls with his face 
in the dirt, almost under the rear step of 
the wagon. He moves his head and arms, 
but his legs are limp. He raises his head 
like a turtle, and claws the ground. 

A man over whose white shirt front the 
blood is spreading perceptibly, is dragged 
to the side of the road. Two or three po- 
licemen bend over and look at him 
closely. One of them shakes his head, and 
slips a newspaper under the wounded 
man's head. There is a plain intimation 
that he is dying. A man in civilian cloth- 
ing comes up, feels his pulse a moment 
then drops the hand, and walks away. 
Another, in a uniform which might be 
that of a company policeman, stops an 
instant, looks at the prostrate figure, and 
continues on his way. 

Loading Wounded in Wagons 

The scene shifts to the patrol wagons in 
the rear. Men with bloody heads, bloody 
faces, bloody shirts, are being loaded in. 
One who apparently has been shot in the 
leg, drags himself painfully into the pic- 
ture with the aid of two policemen. An 
elderly man, bent almost double, holding 
one hand on the back of his head, clam- 
bers painfully up the steps and slumps 
onto the seat, burying his face in both 
hands. The shoulders of his white shirt 
are drenched with blood. 

There is continuous talking, but it is 
difficult to distinguish anything, with one 
exception out of the babble there rises 
this clear and distinct ejaculation: 

"God Almighty!" 

The camera shifts back to the central 
scene. Here and there is a body sprawled 
in what appears to be the grotesque indif- 

ference of death. Far off toward the outer 
corner of the field, whence they had come 
originally, the routed marchers are still in 
flight, with an irregular line of policemen 
in close pursuit. It is impossible to dis- 
cern, at this distance, whether violence 
has ended. 

A policeman, somewhat disheveled, his 
coat open, a scowl on his face, approaches 
another who is standing in front of the 
camera. He is sweaty and tired. He says 
something indistinguishable. Then his 
face breaks into a sudden grin, he makes a 
motion of dusting off his hands, and strides 
away. The film ends. 


Elaine Owen's account of the attack on 
him by T.C.I, thugs: 


Birmingham is hot. The air breathes 
steel, coal, and oil. There are names which 
should be put in parentheses after the 
name Birmingham: TCI, Republic Steel, 
Schloss-Sheffield. And the greatest of 
these is TCI. TCI is Tennessee Coal and 
Iron United States Steel, the House of 

In the company houses they have estab- 
lished a rule that workers with gardens 
must not grow corn or anything as high 
as a man's head. Lights burn in the spaces 
between the houses all night. Don't be 
found in the streets after nine-thirty. But 
somehow the meetings go on, somehow no 
terror can stop these meetings. Although 
it means jail and beating, leaflets appear 
miraculously on doorsteps overnight, 
calling for organization and struggle. 

It was on my way home that a police car 
went by slowly, two uniformed men in 
the front seat. One drove, the other swung 
the spotlight full on me. Across the street 
stood a dark sedan, men standing about 
it, smoking. I walked on around the cor- 
ner. They closed in, and the Ford sedan 



quietly rolled in front of us, the doors al- 
ready open. Not a person in the entire 
block. There was no sense in yelling for 

Held firmly between them in the back 
of the car, we shot past the traffic light 
and between the rows of quiet buildings. 
No one said a word. The windows were 
closed tight and we all sweated slowly, out 
of breath from the tussle, panting . . . 

Smash! It came though I had known 
it would come as a surprise. My lip was 
numb as I took a deep breath and tried to 
double up as it came again. This time it 
caught me on the cheek and I could feel 
the small surface of a yellow gold ring 
crushing the skin against the bone. 

There was a salt taste to the thick 
blood, and I sucked it in with my breath. 
A sharp knee dug into my stomach and I 
gasped, straining to free my arms. I 
thought I would never again get air into 
my lungs, they felt crushed and splattered 
all over inside me. Somehow I forgot my 
face. It was in my lap maybe, maybe in 
his lap, a trip-hammer pounding on it, but 
it was no longer part of me. I started once 
more in my mind to go carefully through 
each pocket in my coat, my trousers, the 
one in my shirt. Suddenly the blows had 
stopped. The realization startled me and I 
opened my eyes, but only the right one 
would open . . . 

Another short silence, then he moved 
once, and his knees came crashing up into 
my face. "Elaine Owen," he said. "Think 
you're smart, don't you. Elaine Owen." 
He dragged it out, gloating over the name, 
over the victim, like a jackal. 

"You've got too much hair you God 
damn nigger lover," he said, and hauled 
me into a headlock, my face in his lap. 
His companion beat a tattoo on my ribs 
with his doubled fists. 

"How do you like this?" he wanted to 
know, the sound coming choked and 
jagged from somewhere deep in his throat 

as a handful of hair was torn out and 
stuffed into the thick blood clogging my 
mouth. I said nothing. There was nothing 
to say . . . 

The tall gaunt one stood in the shadow 
with the dull gleam of a revolver at his 
side, and asked me quick short questions. 
Each time he would pause long enough for 
the younger one with the straight dark 
brows and the rolling lips to slam me in 
the face. "He won't talk," he said. 
Smash! "Hasn't said a God damn word." 
Smash! . . . Keep your mouth shut, I 
said to myself over and over, keep your 
mouth shut, because they're going to 
finish you anyway, and the more you say, 
the more they'll pound before they finish 
you off. 

"Throw him in the river," the fair 
young one said, and from somewhere a 
rope was brought. 

It must have been the driver, whom I 
never saw except for the back of his low, 
broad head there in the car, who pulled 
my coat off from behind, while the rope 
cut down across my shoulders, with a 
high, crying swish before the sharp slap. I 
felt hands rip off the shirt strip by strip, 
yanking it off the places where blood had 
begun to dry and stick. Someone was 
ripping my trousers with a knife. 

Lying face down on the ground I pre- 
tended I had passed out, and wondered 
why I hadn't. The rope cut across my 
back and at first I clamped my teeth 
together and it was all right. After the 
rope bit into the open places time after 
time, I kept saying to myself, "Throw 
me in the river, go ahead, bump me off." 
It gave me something to concentrate on. 
The whip came down taking bits of skin 
with it. 

The whipping stopped, and a boot 
crashed into my ribs. I rolled over and 
slumped back on my face. There was a 
slight pause before it began again. The 
dark browed one danced up and down and 


18 5 

whipped the rope around my shoulders 
and body with the force of the blow. Then 
it would be a moment before he could pull 
it away. The raw pain surged through my 
whole body, reached down and pierced my 
legs and my finger tips with each slash of 
the doubled rope, now wet with blood. I 
gasped and gagged for the breath which 
seemed burned out of me. I kept my lips 
tight shut, but I couldn't stop the grunts 
that came with each blow . . . 

I don't know when it stopped. I only 
know that I could think of nothing but 
the great necessity of keeping my mouth 
shut and lying as still as possible. I recall 
more questions coming out of the shadows, 
through the whisper of the descending 
rope, the eternal convulsions of pain. 
There was nothing more important in the 
world, nothing else in the world at that 
time, but this. 

Vaguely I realized that it had stopped, 
heard the car door slam, and tried to lift 
my head as the tires dug into the soft dirt 

and the car spun away. I tried to see the 
license number in the moonlight, but a 
mist hung over my right eye. The left was 
useless, buried under great puffs of swollen 

I let my face drop forward again, and 
hugged the earth, not wanting to slip off 
into sleep, wanting now to go, somehow, 
back to Birmingham, back to the workers 

Workers kept an armed vigil at my bed- 
side. One metal worker, who had been a 
member of the Klan only a few years ago, 
brought his little eight-year-old boy to 
me. He asked me to sit up in bed, and 
he bared the cuts and slashes that criss- 
crossed my body, back and face, before 
the child's eyes. 

" Look at that, sonny," he said. "That's 
the company. That's what you got to 
learn to hate and fight agin." 

ELAINE OWEN, in The New Republic, 

Aug. 28, 
(Reprinted by permission.) 

To date the record of the hearings of the 
La Follette Committee has been pub- 
lished in eight volumes: one covering the 
preliminary hearings and eight others 
covering the hearings thereafter. The 
volume of the preliminary hearings is 
referred to throughout as Prelim and the 
succeeding volumes are referred to by 
their Roman numerals. 



Pages 3, 4. IV, p. 1262 ff. 
Page 5, line 10. Ibid., p. 1388. 
Page 6, line 6. Prelim., p. 72. 

Line 14. Ibid., p. 77 (in the larger figure 
there was no attempt to draw the line 
between spies and strike-breakers). 
Line 23. Ibid., p. 77. 
Line 28. VI, pp. 2175, 2186. 
Page 7, line 25. Prelim., p. 336 (this list 
includes hirers of the strike-breaking 
service of detective agencies). 
Page 8, line 7. IV, pp. 1363-1370. 
Line 16. V, pp. 1853-1857. 
Line 27. I, pp. 292-294. 


Page 10, line 15. Prelim., p. 60. 
Page II, line 17. Jean E. Spielman, The 
Stool-Pigeon and the Open Shop 
Movement, p. 39. American Publishing 
Co., Minneapolis, 1923. 
Line 27. IV, p. 1105. 
Page 12, line 5. Prelim., p. 68. 

Line 24. IV, p. 1105. 
Page 13, line 15. Ibid., pp. 1211, 1213. 
Page 17, line 13. V, pp. 1612-1614. 
Page 18, line 28. Ibid., pp. 1515, 1516. 
Page 19, line 29. Ibid., p. 1538. 
Page 20, line 32. VI, pp. 2103, 2104. 

Page 21, line 8. VII, p. 2318. 
Line 21. Prelim., p. 104. 

Page 22, line 29. Ibid., p. 311. 

Page 23, line 5. Ibid., pp. 275, 310. 
Line 17. New York Times, December 17, 

Line 22. IV, p. 1148. 

Page 24, line 21. V, p. 1616 (my arrange- 

Page 25, line 8. IV, p. 1376. 
Page 26, line 3. V, pp. 1608, 1609. 

Line 20. National Labor Relations Act 
(48 Stat. 449), 74th Congress. Ap- 
proved July 5, 1935. 
Page 27, line 12. Prelim., p. 275. 
Page 28, line 4. II, p. 686 ff. 

Line 22. Prelim., p. 291. 
Page 29, line 2. Ibid., p. 292. 

Line 31. Ibid., p. 22. 
Page 30, line 14. Ibid., p. 318. 

Line 24. Quoted in The New Republic, 

March 3, 1937. 
Page 31, line 2. Prelim., p. 69. 

Line 19. I, pp. 71, 72. 
Page 32, line 22. Ibid., pp. 179, 180. 
Page 33, line 10. Ibid., p. 205. 

Line 34. VI, p. 2069. 


Page 36, line 14. Prelim., p. 163. 
Page 39, line 12. Ill, p. 1060. 
Page 41, line 7. Ibid., p. 1061. 
Page 43, line 3. IV, p. 1432. 
Page 44, line 2. Ibid., pp. 1432, 1433. 
Page 45, line 3. Ibid., pp. 1442, 1443. 

Line 13. Ibid., p. 1312. 

Line 16. Ibid., p. 1312. 
Page 46, line 7. Ibid., p. 1317. 

Line 14. Ibid., p. 1315. 

Line 34. Ibid., pp. 1434, 1435- 
Page 49, line 18. Ibid., pp. 1436, 1437. 

Page 52, line 20. I, p. 2OI. 

Line 36. IV, p. 1420. 




Page 53, line 22. Ibid., p. 1273. 

Line 26. I, p. 182. 
Page 54, line 8. Ibid., p. 42. 

Line 14. Ibid., p. 81. 
Page 55, line 4. Ibid., p. 43. 
Page 57, line 28. IV, pp. 1317-1319. 
Page 59, line 34. Ibid., pp. 1320-1322. 
Page 60, line 12. II, p. 503. 
Page 61, line 9. IV, p. 1423. 
Page 63, line 2. Prelim., p. 17. 

Line 23. Ibid., p. 177. 
Page 64, line 2. V, p. 1477. 

Line 34. IV, p. 1 149. 
Page 65, line 18. Ibid., pp. 1377, 1378. 
Page 68, line 14. Ibid., pp. 1384, 1385. 
Page 69, line 26. Ibid., pp. 1435, 1436. 


Page 71, line 19. IV, p. 1348. 
Page 72, line 14. Ibid., p. Ill I ff. 

Line 19. II, pp. 674, 675. 

Line 24. Ibid., p. 494. 
Page 73, line 7. Ibid., p. 474 ff. 
Page 75, line 34. Prelim., pp. 334, 335. 

Page 76, line 20. IV, p. 1349 ff. 

Line 28. Ibid., p. 1349 ff. 
Page 77, line 17. Ibid., pp. 1118, 1119. 
Page 78, line 24. Ibid., p. 1161. 
Page 79, line 17. V, p. 1866. 
Page 81, line 18. VI, pp. 1916-1918. 
Page 82, line 20. IV, pp. 1222, 1227. 

Page 83, line 3. VI, p. 1916. 
Line 24. Ibid., pp. 1978-1981. 

Page 84, line 25. VIII, p. 2843. 
Page 85, line 30. Ibid., p. 2775. 
Page 87, line 32. V, pp. 1513, 1514. 
Page 90, line 28. Ibid., pp. 1519-1528. 
Page 91, line 8. Ibid., p. 1589. 
Page 92, line 9. Ibid., pp. 1590, 1591. 

Line 32. IV, p. 1176. 
Page 93, line 5. Ibid., p. 1177. 

Line 12. VI, p. 2061. 

Line 14. IV, pp. 1153-1160. 

Line 16. V, p. 1540. 

Page 94, line 7. II, 594. 

Line 26. Ibid., pp. 399, 400. 

Page 95, line 15. I, p. 268. 

Page 96, line 21. Prelim., pp. 177, 178. 

Page 97, line 15. Congressional Record, 

April 7, 1937, p. 4132. 
Line 32. V, pp. 1534, 1535- 
Page 98, line 14. I, p. 202. 

Line 30. Jean E. Spielman, op. cit., p. 

Page 99, line 12. II, p. 390. 
Line 19. Ibid., p. 391. 
Line 29. Ibid., p. 392. 

Page 100, line 7. Ibid., p. 655. 

Page 101, line 9. Ibid., pp. 402, 403. 
Line 34. Ibid., p. 595. 

Page 102, line 7. Ibid., p. 383. 
Line 32. I, p. 79. 


Page 105, line 9. Adam Smith, An Inquiry 
into the Nature and Causes of the 
Wealth of Nations, pp. 70, 71, edited 
by C. J. Bullock. Harvard Classics 
edition, Collier & Son, 1909. 
Line 21. C. E. Bonnett, Employers 
Associations in the United States, p. 
14. The Macmillan Company, N. Y., 

Page 107, line 3. VIII, pp. 3086-3090. 

Page no, line 4. Ibid., pp. 2954-2958. 
Line 32. Ibid., pp. 2947, 2948. 

Page 112, line n. Ibid., pp. 2948-2950. 
Page 113, line 29. Ibid., pp. 2958-2962. 

Page 114, line u. Ibid., p. 2952. 
Line 24. Ibid., p. 2952. 

Page 115, line 28. Ibid., pp. 3198, 3199. 
Page 118, line 2. VIII, pp. 2881, 2882. 
Page 119, line 3. Ill, pp. 981-994. 

Line 17. Ibid., pp. 818, 820. 
Page 120, line 13. Ibid., p. 1007. 

Line 22. Ibid., p. 1007. 

Page 121, line 3. Ibid., p. 1007. 
Page 122, line 8. Ibid., pp. 833, 834. 
Page 123, line 3. Ibid., pp. 835, 836. 



Page 125, line 2. Ibid., pp. 901, 902. 

Line 31. Ibid., p. 889. 
Page 126, line 31. Ibid., p. 890. 
Page 127, line 17. Ibid., p. 945. 
Page 128, line 3. Ibid., p. 936. 

Line 20. Ibid., p. 887. 
Page 129, line 12. II, p. 404. 
Page 130, line 23. Ill, pp. 939-941- 
Page 131, line 17. Ibid., p. 911. 

Line 22. Ibid., p. 912. 
Page 132, line 12. Ibid., p. 913. 

Page 133, line 15. Ibid., pp. 915, 916. 

Line 34. Ibid., p. 917. 
Page 134, line II. C. E. Bonnett, op. cit., 

p. 292. 

Line 16. Ibid., p. 295. 
Page 136, line 4. Cf. Harry A. Bullis, In- 
dustry Must Speak. Published by 
National Association of Manufac- 
tures, N. Y., 1936, pp. 9-13. 
Line 9. Ibid., p. 13. 
Pe,ge 137, line 22. VI, p. 2036. 


Page 140, line 9. IV, p. 1273. 

Line 31. National Labor Relations 
Board v. Jones & Laughlin Steel Cor- 
poration, The New York Times, April 
13, I937- 

Page 141, line 5. Holden v. Hardy, 169 
U. S. pp. 366, 397. 

Page 142, line 3. Quoted in National La- 
bor Relations Board, Division of 
Economic Research, Bulletin No. I, 
pp. 82, 83, Government Printing 
Office, August, 1936. 
Line 1 6. Cf. Monthly Labor Review, 
Bureau of Labor Statistics, U. S. 
Dept. of Labor, Jan., 1936, May, 
1936, May, 1937. 

Page 143, line 2. National Labor Relations 
Board v. Jones & Laughlin Steel Cor- 
poration, op. cit. 

Line 15. The New York Herald Tribune, 
February 10, 1937. 

Line 33. Ibid., March 6, 1937. 

Page 144, line 7. VII, p. 2509. 

Line 21. The New York Times, March 

15, 1937- 
Page 145, line 10. Ill, p. 883. 

Line 22. Prelim., p. 47. 

Page 146, line 15. The New York Times, 

April 14, 1937. 
Page 147, line^. Ibid., December 17, 1934. 

Line 30. Ibid., May 27, 1937. 
Page 148, line 4. Ibid., May 27, 1937. 

Line 35. Ibid., June i, 1937. 
Page 149, line 7. The New York Post, June 

17, 1937- 

Page 150, line 24. Prelim., pp. 267, 268. 
Page 151, line 3. Ill, p. 752. 

Line 13. Ibid., p. 1048. 

Line 16. IV, p. 1341. 
Page 152, line 7. VIII, pp. 2983, 2984. 
Page 153, line 17. Ibid., pp. 2995, 2996. 
Page 154, line n. Ibid., p. 2975. 

Line 28. II, p. 410. 
Page 155, line 6. Ibid., pp. 410, 411. 

Line 20. Ibid., p. 393. 

Line 24. Ibid., p. 390. 

Line 26. Ibid., p. 458. 

Page 159, line 4. Ill, p. 862. 

Line 20. C. E. Bonnett, op. cit., p. 80. 
Line 25. IV, p. 1282. 
Line 30. Prelim., p. 7. 
Page 160, line 6. National Labor Rela- 
tions Board v. Jones & Laughlin Steel 
Corporation, op. cit. 
Line 30. National Labor Relations Act, 

op. cit. 

Page 161, line 26. National Labor Rela- 
tions Board, Bulletin No. I, op. cit., 
p. 83. 
Page 162, line 14. Congressional Record, 

April 7, 1937, p. 4119. 
Page 163, line 7. The New York Times, 

Feb. 14, 1937. 

Line II. Henry D. Lloyd, Wealth 
against Commonwealth (1894), p. 175. 
National Home Library Foundation, 
Washington, D. C., 1936. 


Adlen, Richard, spy, affidavits on, 46. 
Ailes, A. S., 94, 128, 129, 154, 155. 

testimony of, 100, 101. 
Agencies, clients of, 7. 

evasion of Social Security Act by, 92, 

formation of company unions by, 

. 3-33- 

list of, Appendix A. 

making and faking of trouble by, 95 ff. 

morals and ethics of, 71 ff. 

new technique for strike-breaking, 

number of, 5. 

relation to class war of, 143. 

spying on spies by, 84. 

spying on vendor plants by, 81-83. 

strike-breaking by, 99, 100. 

tie-up to munitions firms of, 102, 104. 

tools of employers, 139 ff. 

trustification of, 103, 104. 
Akron Be aeon- Journal, editorial of, 114, 


Akron Law and Order League, 114, 115. 
American Federation of Labor, question- 
naire of, 21, 22. 
American Liberty League, 26. 
"American Way," the, 139 ff. 
Anderson, Harry W., testimony of, 81. 
Andrews, John, 71. 

and Richard Frankensteen, 3^4. 

Associations of employers, number of, 

105 ff. 

purpose of, 105 ff. 
Atlantic Production Co., 66, 67. 


Babson, Roger W., report on agencies of, 

Barker, Lawrence, testimony of, 20. 

Bennett, Harry H., 146, 147. 

Blacklist, 28. 

Black and Decker Electric Co., strike at, 
129, 130. 

Blankenhorn, Heber, 5, 6. 

Blind Ads, 64, 65. 

Bonnett, Clarence E., 105. 

Brady, Samuel H., 63. 

Bronson, R. L., 55-57. 

Brunswick, R. L., 86. 

Bullis, Harry A., 134, 136. 

Burns, William J., International Detec- 
tive Agency, Inc., 6. 
shadowing of trial jurors by, 84, 85. 

Burns, W. Sherman, letter of solicitation, 
106, 107. 
testimony of, 84, 85. 

Burnside, R. L., testimony of, 58, 59, 

Butler, System of Industrial Survey, 30, 


Caldwell, Frank W., 132. 

Capital and Labor, strength of, 141. 

Chrysler Corp., 12. 

payment to Corporations Auxiliary 
Co., 5, 76. 

Securities Act violation by, 76-78. 

Citizens' Alliance groups, purpose of 


Clark, Edward S., testimony of, 83. 
Class war, 139 ff. 

indication of, 143 ff. 

Coates, Robert W., testimony of, 83, 84. 
Collective bargaining, 160, 161. 

statement of Commission on Industrial 
Relations on, 161. 


I 9 2 


Columbian Stamping and Enameling 

Co., 102. 
Commission on Industrial Relations, 

statement on collective bargaining of, 

141, 142, 161. 

"Committees of citizens," 115-118. 
Company Unions, formation and purpose 

of, 29-30. 

tools of employers, 161, 162. 
Corporations Auxiliary Co., 6, 7-8, 12, 

23, 52, 107- 

accessory to Securities Act violation, 

annual income of, 71. 

function of, n, 12. 

payments by Chrysler Corp. to, 76. 

payment of operatives, 5. 
Cronin, James C., spy, 63. 
Grouse Hinds Co., 132-133. 
Cowdrick, E. S., 136, 137. 
Cunningham, E. T., testimony of, 116, 



Dalrymple, Sherman H., beating of, 152. 

Davison, E. C., testimony of, 127. 

D. G., spy, 39-41. 

Deming, George E., 130, 131. 

Democracy, necessity for in industry, 

160, 161. 

Dudley, , testimony of, 15. 

Duquesne, 29. 


Electric Auto-Lite Co., 45. 
Employers' Association of Akron, 107 ff. 

members and contributions of, Ap- 
pendix B. 
Employers, belief in class war of, 143-145. 

opposition to collective bargaining of, 
141, 142. 

organization of, 105 ff. 


Federal Laboratories, Inc., 93, 102. 
Firestone Tire Co., 100, 101. 
Flint Alliance, 115. 

Foote, Herrick, 94. 

Ford, Henry, statement on unionism by, 

Ford Motor Co., attitude toward union- 
ism of, 145-148. 
1936 profit and loss account of, 148. 

Forwerck, Charles, affidavit of, 60, 61. 

Foster, Louis, spy, affidavit on, 47-49. 

Foster Service, letter of, 9. 

Frankensteen, Richard, beating of, 147, 

his own account of the beating, Ap- 
pendix F. 
testimony of, 53, 139, 140. 

and John Andrews, 3. 

Fruehauf Trailer Co., case of, 27, 28. 
Furey, Bart, spy, 45, 46. 


Gadd, C. A., testimony of, 129, 130. 

General Motors Corp., 162, 163. 
fake bills of, 78-81. 
payments to Pinkerton Detective 

Agency, 6. 

purchase of munitions by, 154, 155. 
shadowing of government official for, 

Goodyear Tire & Rubber Co., 113 ff. 
military training of guards of, 152, 153. 
report to Conference Committee of, 
Appendix E. 

Grabbe, W. H., 101, 102. 

Gray,W.H., 31,94, 95. 

testimony of, 53-55. 

Green, William, testimony of, 21. 


Hale, Merle C., testimony of, 79-82. 
Harlan County, 149. 
Haskell, Allen P., testimony of, 8 1, 82. 
Hoffman, Governor H. G., 116. 
Holderman, Carl, testimony of, 63, 95, 96. 

Homestead, 29. 
strike, 91. 

Hughes, Chief Justice, 140. 




Industrial espionage, destruction of, 162, 


violation of Wagner Act by, 143. 
International Auxiliary Corp., 23, 49, 92. 
Ivey, G. Eugene, testimony of, 102. 


Jennings, Charles, letter of, 158, 159. 
Johnston, Joseph J., letter of, 153, 154. 
Jones & Laughlin, Labor Board Case, 

140, 142. 

election of, 149. 


Keller, K. T., 131, 132, 140. 

statement of, 144. 
Killinger, Charles, affidavit of, 42. 
Kuhi, E. M., testimony of, 32-33, 52, 98. 


Labor disputes, causes of, 142. 

La Follette Committee, 5. 

La Follette, Senator R. M. Jr., 9, n, 33. 

Lake Erie Chemical Co., 93, 94, 128, 129, 

154, 155- 

gases of, 99, 100. 

Lawson, A. E., testimony of, 31, 32. 
Le May, E. D., 150-151. 
Lengel, John D., affidavit of, 47-49. 
Lesley, C. D., testimony of, 152-153. 
Letteer, Lyle, testimony of, 19, 97. 
Lewis, John L., on spy system, 162, 163. 
Libbey-Owens Ford Glass Co., 60. 
Lichtenberger, George, spy, 126. 
Lionel Manufacturing Co., 48. 
Lippmann, Walter, on employment of 

agencies, 143. 
Litchfield, Paul W., testimony of, 110- 

Lloyd, Henry Demarest, on spying, 163. 


McGrady, Edward, shadowing by Pinker- 
tons of, 86-90. 
MacGriffin, Edgar E., 102. 

Manville Manufacturing Co., 93. 

strike-breaking by, 99, 100. 
Martin, Homer, affidavit of, 46. 
Martin, William H., testimony of, 17-18, 


Marshall Detective Service Co., letter of, 

Matles, James, testimony of, 127, 128. 
Memorial Day massacre, 148, 149. 
Military training of guards by employers, 

Mohacsi, John, spy, affidavit of, 66-68. 

testimony of, 92. 

Morse Twist & Drill Co., 125, 126. 
Munitions makers, 93 ff. 
Munitions, purchase of by employers, 

154, 155- 

N.R.A., 29, 30. 

Labor Department inquiry, 23, 146, 

National Association of Manufacturers, 


membership of, 134. 

propaganda activities of, 134, 136. 

purpose of, 134. 

National Corporations Service, 53, 102. 
National Labor Relations Act, 143. 
National Labor Relations Board, 125. 

concerning Fruehauf Trailer Co., 27, 28. 

election by, 149. 

National Metal Trades Association, 105. 

customers of Lake Erie Chemical Co., 
128, 129. 

membership of, 118. 

opposition to collective bargaining of, 

purpose of, 1 19. 

rules of conduct of, 120, 121. 

tactics of spies of, 127. 

union-smashing of, 125, 126. 

violence of guards of, 129, 130. 
New York Herald Tribune, editorial on 

collective bargaining of, 143. 


Open shop, 121, 122. 
Organization, of employers, 105 ff. 

I 9 4 


Organization of workers, 157 ff. 
purpose of, 140, 141. 

Owen, Elaine, beating of, 150, 151, Ap- 
pendix H. 


Paramount News, suppressed film of, 

Appendix G. 

Parsons, H. C., testimony of, 107-110. 
Patterson, George A., testimony of, 29, 62. 
Pekin Distilling Co., 150. 
Perkins, Frances, 29. 
Philco Radio Co., 131. 
Pinkerton, Robert A., income of, 73. 

testimony of, 14-16, 89. 
Pinkerton's National Detective Agency, 

6, 21, 23, 24, 56. 

annual income of, 72. 

clients of, 8. 

fake General Motors bills of, 78-81. 

payments received from General Mo- 
tors, 6. 

spying on Corporation's Auxiliary by, 

shadowing of government official by, 

violation of law by, 91-92. 


Railway Audit and Inspection Co.. 6, 31, 

34, 53-55, 102. 

clients of, 8. 

Red Star Milling Co., 10. 
Reed, Walter, affidavit of, 43. 
Republic Steel Co., anti-union policy of, 

148, 149. 

Rice, L.D., 31, 54,95. 
Rigby, Charles, testimony of, 55-57. 
Roberts, Edith, affidavit of, 45, 46. 

Robinson, Senator J. T., on company 
unions, 162. 

Ross, Dan G., 13. 

salary of, 71. 

testimony of, 64. 
Rossetter, Asher, 60. 

testimony of, 15. 

salary of, 72. 

Roszel, F. A., 22, 23, 44, 45. 
Rubicz, Steve, affidavit of, 68, 69. 


Sayre, Homer D., tactics toward friends 

of Labor of, 131-133. 

testimony of, 119, 121-125, 144, 145. 
Securities and Exchange Act, evasion of, 

Sherman Service, Inc., 6. 

correspondence course booklet of, 73. 
Shults, spy, 39-41. 

Sloan, Alfred P., Jr., statement of, 144. 
Slusser, Clifton, testimony of, 151, 152. 
Smith, Adam, 105. 
Smith, Edwin S., 28. 
Smith, Hal, on necessity of spies, 145. 

Smith, James H., salary of, 72. 
testimony of, II, 12, 77, 93. 

Smith, Matthew, testimony of, 23. 

Social Security Act, 92, 93. 

Sparks, Mayor C. Nelson, 114, 115. 

"Special Conference Committee," pur- 
pose of, 136-137. 
sample report to, Appendix E. 

Spies, as union officials, 21-33. 

correspondence course booklet of train- 
ing for, 73-76. 

cost to industry of, 6. 

definition of, 139. 

effect of activity of, 21. 

function of, 9 ff. 

employers argue necessity for, 159. 

how defeated, 162, 163. 

instructions to, 35, 36. 

necessity in class war of, 145. 

number of, 6. 

Sherwood Detective Bureau, 116-118. 

reports of, 17, 38-41. 

reports on union members by, 18. 

sample reports of, Appendix B, C. 

stealing of union records by, 19. 

tapping of telephones by, 20. 

technique of union-smashing of, 34 ff. 

wages of, 71. 

Spy, "report en route," 37. 
Stott, John, spy, affidavits on, 42, 43. 


Strikes, causes of, 142. 
Stringham, L. A., 131, 133. 
Sugar, Maurice, statement of, 146, 147. 
Summers, Charles, testimony of, 150. 
Sunbeam Electric Co., anti-unionism of, 

Supreme Court, decision on agencies of, 

8 5-. . 

decision on collective bargaining of, 142. 
decision on unionism by, 140. 
decision on Wagner Act, 26. 
Swope, Gerard, attitude toward Labor 
of, 132, 134. 

Sylvia, Ferdinand, affidavit of, 126. 

Tear gas, no sale to unions of, 155. 

sales to employers of, 155. 
Tennessee Coal Iron & Railroad Co., 

150, 151. 

Thomas, Senator Elbert D., 9. 

Trade unions, answers to objections to, 


methods of building, 158, 159. 

necessity for, 157 ff. 

purpose of, 140, 141. 
Travis, Robert, testimony of, 21. 
Trusch, Nicholas, 27. 


Union-Smashing, Strike-Breaking Co., 
103, 104. 
technique of, 34 ff. 

Unionism, defeat of spying by, 157 ff. 
Unionization, purpose of, 140, 141. 
United Automobile Workers attempt to 

organize Ford, 147, 148. 
U. S. Rubber Reclaiming Co., 14-17. 


Vigilante committees, 115-118. 
Violence, use of, by employers, 147 ff. 


Wagner Labor Relations Act, 25, 26, 157, 

159, 160, 161. 
Wealth of Nations, 105. 
Weber, salary of, 72. 
Weckler, Herman, 140. 

testimony of, 12, 13. 
Western Pacific Railroad, termination of 

Pinkerton service, 25. 
Wheeler, Senator B. K., speech by, 96, 97. 
Williams, Roy, affidavit of, 52. 

testimony concerning, 53. 
Wohlforth, Robert, 14. 
Woodward, L. E., 21. 
Workers, way out for, 163. 

World-Telegram, story of beating at Ford 
plant of, 147, 148. 

Worthington Pump Co., 47, 66, 68, 69, 92. 


Ziegler, Phil E., testimony of, 63. 


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1. BABIES WITHOUT TAILS, by Walter Duranty 

2. ALL'S FAIR, by Richard Wormser 

3. MURDER STRIKES THREE, by David MacDuff 

4. OLD HELL, by Emmett Gowen 

5. RED FEATHER, by Marjorie Fischer (Juvenile) 

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Rudolf Modley and George R. Taylor 

2. FROM SPANISH TRENCHES, compiled by Marcel Acier 

3. KALTENBORN EDITS THE NEWS, by H. V. Kallenborn 

4. THE LABOR SPY RACKET, by Leo Huberman 

5. MEN WHO LEAD LABOR, by Bruce Minion and John Siuart 


1. TRAVELS IN THE CONGO, by Andre Gide 

2. TWELVE AGAINST THE GODS, by William Bolitho 

3. SUSPICIOUS CHARACTERS, by Dorothy L. Sayers 

4. THE LEAVENWORTH CASE, by Anna Katharine Green 

5. THEY SHALL INHERIT THE EARTH, by Morley Callaghan 


by William Saroyan 

7. THE HONORABLE PICNIC, by Thomas Raucat 

8. MR. WESTON'S GOOD WINE, by T. F. Powys 

9. A PASSAGE TO INDIA, by E. M. Forsler 

10. BLOOD OF THE CONQUERORS, by Harvey Fergusson 


The author of The Labor Spy Racket has 
already established a notable reputation al- 
though he is only thirty-four. His first books, 
We, the People, (1932) and Man's Worldly 
Goods, (1936) found a large reading public 
both in America and England. Man's Worldly 
Goods was the April choice of an English book 
club, with a first printing of some 46,000 copies. 
It was also the February choice of the Book 
Union over here. Louis M. Hacker, Professor 
of History at Teachers' College, Columbia 
University, and co-author of The United 
States: A Graphic History, in reviewing it for 
The New Republic, wrote: "Mr. Huberman is 
singularly equipped for his task; he is the pos- 
sessor of an amazingly vivid vocabulary and 
what amounts to a real talent for simplifica- 

Mr. Huberman was born in Newark, New 
Jersey, graduated from the Normal School 
there and taught for four years in the Newark 
public schools. He spent his summers working 
in various industrial jobs. He has traveled 
widely from coast to coast, hitch-hiking, in 
this country, to study local conditions, and ex- 
tensively in Europe as an observer of industrial 
and political conditions. He studied further 
at Columbia University, the New School for 
Social Research, the London School of Eco- 
nomics, and at New York University (M.A., 
1937), and was an associate editor of Scholas- 
tic magazine until he resigned to devote the 
greater part of his time to writing.